World Bank Sells $33.8 Million More of Its Private Ethereum Blockchain Bonds - CoinDesk
(coindesk.com)
The World Bank has issued a second round of its landmark blockchain bonds.
The international financial institution raised another $50 million AUD ($33.8 million U.S.) by selling the “blockchain-operated debt instrument” (bond-i), according to Commonwealth Bank of Australia (CommBank), which managed the sale jointly with RBC Capital Markets and TD Securities.Both new and existing investors participated, CommBank said.
All told, the World Bank has issued $160 million AUD ($108 million U.S.) of these bonds, which run on a private version of the ethereum blockchain. It is “the first bond created, allocated, transferred and managed through its life-cycle using distributed ledger technology,” according to CommBank.
“We are happy to see the continued, strong support and collaboration from investors and partners,” Andrea Dore, the World Bank’s head of funding, said in a press release.
“The World Bank’s innovation and experience in the capital markets is key to working with our member countries to increase digitization to boost productivity in their economies and accelerate progress towards the Sustainable Development Goals.
”The blockchain platform was built and developed by CommBank’s Blockchain Centre of Excellence.
“CBA now has tangible evidence from our first bond offering using blockchain technology and subsequent bond management, secondary trading and tap issue via the same platform, that blockchain technology can deliver a new level of efficiency, transparency and risk management capability versus the existing market infrastructure,” Sophie Gilder, head of blockhain and AI at CommBank, said in last week’s release, adding:
World Bank image via Shutterstock
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The international financial institution raised another $50 million AUD ($33.8 million U.S.) by selling the “blockchain-operated debt instrument” (bond-i), according to Commonwealth Bank of Australia (CommBank), which managed the sale jointly with RBC Capital Markets and TD Securities.Both new and existing investors participated, CommBank said.
All told, the World Bank has issued $160 million AUD ($108 million U.S.) of these bonds, which run on a private version of the ethereum blockchain. It is “the first bond created, allocated, transferred and managed through its life-cycle using distributed ledger technology,” according to CommBank.
“We are happy to see the continued, strong support and collaboration from investors and partners,” Andrea Dore, the World Bank’s head of funding, said in a press release.
“The World Bank’s innovation and experience in the capital markets is key to working with our member countries to increase digitization to boost productivity in their economies and accelerate progress towards the Sustainable Development Goals.
”The blockchain platform was built and developed by CommBank’s Blockchain Centre of Excellence.
“CBA now has tangible evidence from our first bond offering using blockchain technology and subsequent bond management, secondary trading and tap issue via the same platform, that blockchain technology can deliver a new level of efficiency, transparency and risk management capability versus the existing market infrastructure,” Sophie Gilder, head of blockhain and AI at CommBank, said in last week’s release, adding:
“Next we intend to deliver additional functionality to deliver greater efficiencies in settlement, custody and regulatory compliance.”A year ago, the World Bank announced the first $110 million AUD (roughly $81 million U.S. at the time) issuance of bond-i.In May of this year, the World Bank and CommBank began to record secondary market bond trading using blockchain tech.
World Bank image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
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Francisco Gimeno - BC Analyst Very important news. After last year blockchain bonds' issue, the World Bank underlines with this second offering the efficiency of using blockchain in financial markets. And with this, the blockchain's use cases grow and evolve and the institutional money feels more comfortable with this new tech. -
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Kristal Saints Content Creator at Cristal Saints Actions like these are what will set the early adopters (like World Bank) apart from companies that aren’t aware of the problem solving potential blockchain provides. World bank has high altruistic projects taking place and definitely interesting how they will use this technology in solving real world problems like ending extreme poverty and promoting shared prosperity just to name a few. By increasing digitalization usage and showcasing what’s possible investors and partners feel more confident in supporting these strategic moves and the current market structure will certainly be replaced by a new level of efficiency, transparency and risk management for all economies.