Australia's Largest Bank Issues Blockchain-Based Bonds
Australia's largest bank, Commonwealth Bank of Australia (CBA), has been mandated by the World Bank to issue bonds on the Blockchain platform. With this mandate given, CBA has the freedom to create and allocate to other bondholders through the Blockchain. The announcement is contained on the official website of the World Bank, which was published on August 10, 2018.
This Bond, named "Blockchain Offered New Debt Instrument" (Bond-I), will be launched and distributed exclusively on the Ethereum Blockchain platform, which is specifically operated by the World Bank and the Commonwealth Bank of Australia
The plan, Bond-I will be officially published after consultation with all investors involved. These investors include the Northern Trust, QBE Insurance, and the Treasury Corporation of Victoria which have had a fairly good reputation in the financial world.
Intended as a Global Solution
At present, the World Bank issues bonds worth 50-60 billion USD every year in its efforts to reduce global poverty and maintain positive sentiment in the global market. The World Bank will run the mechanism for Bond-I in Washington D.C. on Microsoft Azure Cloud computing systems.
Before its release, Arunma Oteh, treasurer of the World Bank stated that it had collaborated with CBA for one year, to develop technology that could provide solutions to global bond problems on the Blockchain platform. Finally, Blockhain Ethereum was chosen because it has the largest and most active development community in the global scope.
James Wall, Executive General Manager of Institutional Banking & Markets International from CBA, said:
"We take collaborative action to innovate, and collaborate with various leading financial institutions, government agencies, and companies interested in Blockchain. We believe that ...