World Bank’s ‘Bondi’ Blockchain Bond of $73 Million Set to Settle Soon
The World Bank Launches Blockchain-Based, $73 Million Bond
It has been recently revealed that the World Bank will be issuing a $73 Million worth bond, which is backed by blockchain technology. This is notably the first of its kind, and the reason for such an approach is to assess whether the innovative technology is superior than traditional bond issuance practices, i.e. manual procedures.
According to Reuters, the Commonwealth Bank of Australia (CBA) will be responsible for the deal and have since announced that the two-year bond, dubbed “Bondi”, will yield 2.2%. In addition, CBA shared that the bond would be completed on Tuesday, August 28.
Interestingly, the reason for calling the bond, Bondi is to captivate features of Australia, particularly that of the country’s beach. Bondi is also short for “Blockchain Operated New Debt Instrument”, hence putting together culture, finance and technology under one roof.
Based on the claims made by the Executive General Manager of CBA, James Wall, this effort could potentially initiate instant settlements. In particular, Reuters quoted Wall saying the following:
“You’re collapsing a traditional bond issuance from a manual bookbuild process and allocation process, […] into something that could happen online instantaneously.”
CoinDesk also conveyed this matter and has since disclosed that the blockchain platform used for the issuance of bond is one that was created by the CBA’s blockchain lab.
Ultimately, the World Bank is not only working towards establishing competent bond practices, as their long-term goal is to eliminate poverty across the globe. Their first step towards succeeding in their goal, according to CBA, is by initiating the first ever blockchain bond that is raised from public investors.
Will the World Bank’s involvement in blockchain technology help lead more industries into this respective industry? What are your thoughts on an instant, online bond issuance as opposed to that of manual procedures? Let us know!