The World Bank (WB) raised another $33.8 million by selling the second batch of “blockchain-managed debt instruments” (bond-i).
The fact of the sale is confirmed by the Commonwealth Bank of Australia (CBA), which managed the transaction jointly with RBC Capital Markets and TD Securities. According to the CBA, both new and early 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 entire life cycle using distributed ledger technology.”
“We are pleased that investors and partners continue to provide strong support and participate in this initiative,” said Andrea Dore, head of the World Bank’s finance department.
“The World Bank’s innovations and experience in capital markets play a key role in working with our member countries to increase the level of digitalization in order to develop their economies and accelerate progress towards achieving the Sustainable Development Goals.”
The platform for issuing bonds was created and developed by the CBA Center for Advanced Technologies on the basis of the Ethereum blockchain. Microsoft has tested its architecture, security and fault tolerance.
“CBA now has real proof that blockchain can provide a new level of efficiency, transparency and risk management capabilities compared to the existing market infrastructure,” said Sophie Gilder, head of blockchain and AI.
“Next, we plan to provide additional functionality to improve the efficiency of calculations, storage and compliance with regulatory requirements.”
To launch blockchain-based bonds, the World Bank entered into a partnership with CBA in August 2018, choosing it as 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 bond trading on the secondary market