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The first public bond in the world created and managed using only blockchain has received support from seven investors, the Commonwealth Bank of Australia, the only lead manager of the agreement announced on Friday, helping raise $ 110 million ($ 80.48 million) for the World Bank. [19659002] The executive director general of the Commonwealth Bank (CBA), James Wall, said that the agreement, designed to test how technology could improve ten-year bond sales practices, exceeded expectations and interest was "overwhelming".
The US fund Northern Fiducia, three Australian state governments, the local First State Super pension fund and CBA were investors in the deal, which is seen as a first step to move bond sales away from manual processes to a more rapid and economical automation.
World Bank Treasurer Arunma Oteh said that there was a "huge" interest.
"I am pleased that this pioneering bond transaction using distributed register technology, bond-i, has been very well received by investors," said Oteh, referring to the acronym acronym, which stands for Blockchain Operated New Debt Instrument, as well as a reference to Australia's most famous beach.
"We are particularly impressed by the breath of interest of official institutions … these high-quality investors have understood the value of exploiting technology for innovation in capital markets."
The World Bank, the whose bonds have a AAA rating, they regularly use their lending power to help develop new bond markets and new pioneering means to sell and trade securities.
Issues between $ 50 billion and $ 60 billion in bonds to support economic progress in developing countries.
Australia is a popular test site for market developments due to its well-established financial infrastructure and the familiarity of international investors with the Australian dollar, which is one of the most traded currencies in the world.
While there have been other prototypes or parallel simulation blockchain projects on the market, CBA said that the World Bank bond will be the first time that capital is raised by public investors through a legally valid issue that uses blockchain from the beginning to the end.
