The international financial institution, the World Bank (WB), raised another $ 33.8 million by selling a second batch of “blockchain-driven debt instruments” (bond-i).
The sale is confirmed by the Commonwealth Bank of Australia (CBA), which managed the deal in conjunction with RBC Capital Markets and TD Securities. According to CBA, both new and former investors took part in the transaction.
In total, the World Bank issued bonds on the blockchain in the amount of $ 108 million. According to the CBA, these are “the first bonds created, placed, transferred and managed throughout the life cycle using distributed registry technology”.
“We are pleased that investors and partners continue to provide strong support and participate in this initiative,” said Andrea Dore, World Bank Finance Manager.
“The World Bank’s innovations and experience in capital markets play a key role in working with our member countries to increase digitalization in order to develop their economies and accelerate progress towards sustainable development goals.”
A platform for issuing bonds was created and developed by the CBA Center for Advanced Technologies based on the Ethereum blockchain. Microsoft has tested its architecture, security, and fault tolerance.
“The CBA now has real evidence that the blockchain can provide a new level of efficiency, transparency and risk management compared to the existing market infrastructure,” said Sophie Gilder, head of blockchain and AI.
“Next, we intend to provide additional functionality to increase the efficiency of settlements, storage and regulatory compliance.”
To launch bonds on the blockchain, the World Bank entered into a partnership with the CBA in August 2018, choosing it the sole organizer of the initiative. The experiment allowed the bank to raise $ 81 million, and in May of this year, organizations tested the blockchain in accounting for bonds trading on the secondary market.