SYDNEY (Reuters) – The World Bank assessed the world's first public debt created and managed using only blockchain in a $ 100 million ($ 73.16 million) deal designed to test how technology could improve sale of old bonds of decades.
Commonwealth Bank of Australia, the sole owner of the agreement, said in a statement that the two-year bonds were priced at 2,2251 percent and would be established on August 28th.
The prototype contract, dubbed "Bondi" The link, which is the basis of the new Blockchain chain debt instrument, as well as a reference to Australia's most famous beach, is seen as a first step in moving bond sales far from manual processes to a more rapid and economical automation.
"You are collapsing a traditional bond issue from a manual bookbuild and allocation process, an extended agreement then a registrar and a custodian, into something that could happen online instantly," James Wall, executive director general of the government, told Reuters. CBA in an 'interview at the beginning of this month.
The World Bank, whose bonds have a AAA rating, regularly uses its lending power to contribute to the development of new bond markets as well as new pioneering means for the sale and trading of securities.
Issues $ 50 billion to $ 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.
At the start of this year, Russian MTS, a telecommunications operator, and Sberbank claimed a blockchain bond in the world. The agreement, for 750 million rubles ($ 11.20 million) over 182 days, was nevertheless placed privately, rather than offered by auction, as is the norm and the case with the Bank's agreement World.
Although there have been other prototypes or parallel simulation blockchain projects on the market, CBA has 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.
CBA has set the price for the "kangaroo" agreement at 23 basis points above the benchmark rates. Kangaroo bonds are bonds issued in Australian dollars by foreign institutions.
The push of the bank's blockchain arrives while the Australian Securities Exchange plans to move to the use of distributed ledger technology (blockchain) to liquidate and regulate equity trading starting in 2020 to help reduce costs.
Report by Paulina Duran and Alun John; Editing by Jennifer Hughes and Eric Meijer