First World Blockchain Bond Is to Appear in Australia
CryptoBit News Today2 min read
The World Bank has selected Commonwealth Bank of Australia as the exclusive arranger for the world's first bond designed to be created, allocated, transferred, and managed via blockchain technology. Known as "bond-i"—short for Blockchain Operated New Debt Instrument—the Australian dollar Kangaroo bond was created with feedback and backing from investors such as QBE, Northern Trust, and Treasury Corporation of Victoria.
Following its rollout, the debt instrument will be issued and allocated through a blockchain system run jointly by CBA in Sydney and the World Bank in Washington. This project is being implemented using a private Ethereum blockchain, underscoring the World Bank’s focus on sustainable economic development and CBA’s innovation in blockchain technology. Microsoft carried out an independent assessment of the CBA platform's architecture, resilience, and security, while law firm King & Wood Mallesons served as deal counsel and provided guidance on the legal framework for the rollout.
Built by CommBank's internal blockchain laboratory, the technology intends to turn essential issuance participants, including banks and investors, into active nodes across a decentralized network. James Wall, Executive General Manager of Institutional Banking & Markets International at CBA, noted that the bank collaborates with leading financial firms, corporate entities, and government agencies to innovate using blockchain. He added that CBA was pleased to team up with the World Bank, endorsing its ambition to utilize technologies like blockchain to make financing solutions more efficient and help end extreme poverty.
World Bank Treasurer Arunma Oteh explained that innovation has played a central role in the institution's ability to tap capital markets for development since its debut bond issuance in 1947. Oteh stated that following a year of collaboration with Commonwealth Bank of Australia, the institution was ready to introduce its inaugural blockchain bond. The initiative drew upon a long-term relationship between the two entities, uniting the World Bank's 70 years of capital market innovation with CBA's Blockchain Centre of Excellence. CBA has served as a lead manager on multiple IBRD bond offerings across Australian and New Zealand markets since 2009.
Established in 1944, the World Bank functions as a global development cooperative owned by 189 member countries. Sophie Gilder, Head of Blockchain, Innovation Labs at CBA, remarked that the transaction represents a major milestone toward unlocking blockchain's potential to transform financial markets and services. She explained that joint efforts with the World Bank helped resolve the technical and legal challenges necessary to execute the landmark transaction. Gilder added that the endeavor reinforces CBA's leadership in blockchain technology as the bank looks forward to building on the achievement alongside its clients.
