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The Commonwealth Bank of Australia (CBA) announced the completion of the world's first bond delivered via blockchain, on behalf of its client, the World Bank.
According to CBA, the "$ AUD Kangaroo bond", Blockchain The new debt instrument offered (bond-i), which uses a private block of Ethereum, was created, assigned, transferred and managed through its life cycle exclusively by means of distributed ledger technology.
The two-year bond has raised 110 million Australian dollars. [19659002] In addition to the CBA, investors in the bond include First State Super, NSW Treasury Corporation, Northern Trust, QBE, SAFA and Treasury Corporation of Victoria.
"Since announcing the mandate, the interest we have received for the bond-i has been overwhelming," said James Wall, executive director general of the Institutional Banking and Markets International James Wall.
"It is clear that the market is ready and open to the spread of emerging technologies and sees the potential evolution of capital markets.It was a pleasure to work on such an innovative transaction with a forward-looking organization like the World Bank. "
In announcing the initiative at the beginning of this month, the bank said that once launched, the bond will be issued and distributed on a blockchain platform managed by the World Bank and 39; ACB in Washington and Sydney.
The announcement follows the head of blockchain bank Sophie Gilder revealing in December that CBA expected to be the first to implement a bond on the blockchain.
At the time, Gilder said the first bond issue in the world would be in partnership with a "very large" world broadcaster.
"We know that the blockchain has the potential to revolutionize services and financial markets, and this transaction is a significant step towards that future state," Gilder s help in a statement on Friday.
"Working in partnership with the World Bank, we have been able to find solutions to technical and legal considerations to turn this innovative transaction into reality."
The blockchain platform was designed and developed by the Blockchain excellence center of CBA Innovation Lab. An independent review of the architecture, security and resilience of the CBA blockchain platform was conducted by Microsoft, and the study Legal King & Wood Mallesons acted as a bond advisor and advised on legal architecture for its implementation.
The bank last The month announced the completion of a global trade experiment, overseas shipments tracked via blockchain.
The new blockchain platform, supported by distributed accounting technology, smart contracts and the Internet of Things (IoT), was used to facilitate the commercial experiment that saw 17 tons of almonds sent by Sunraysia in Victoria, Australia in Hamburg in Germany.
At the end of 2016, CBA, along with Wells Fargo and Brighann Cotton, also supported the first interbank commercial transaction by combining blockchain technology, smart contracts, and IoT.
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