World Bank Uses Blockchain Technology To Raise $33 Million For Its Kangaroo Bond
The World Bank has recently affirmed that it raised around $33 million USD for its Kangaroo bonds, which are due to August 2020. What is new here is that the whole process of creating, allocating and transferring these bonds was fully made with the help of blockchain technology.
According to the reports, the bank used its Bond-i platform to connect three major investors, the Commonwealth Bank of Australia, TD Securities and RBC Capitals. Minor investors were also linked to the three big ones during the operations. Reports affirmed that they may include a group of investors and an offshore investor.
An executive manager of the Commonwealth Bank of Australia, James Wall, affirmed that this transaction was a very important milestone for the industry. According to him, it can demonstrate the full lifecycle of the needs of capital markets and issuers.
The platform, he believes, is very powerful because it can upgrade the efficiency and the security of the transactions made in these operations.
According to the World Bank, the use of the Bond-i platform was only a part of a much broader initiative to use blockchain technology in its operations. After the success of this operation, the bank is set to use it in the future.
In related news, the International Monetary Fund (IMF) and the World Bank had joined forces some months ago to create a private blockchain platform, which would use a token that resembles a cryptocurrency (but it is not decentralized and only created for internal use).