CBA, World Bank Record Secondary Market Trading Data On Blockchain

Blockchain, Innovation, News | May 17, 2019 By:

The Commonwealth Bank of Australia (CBA) and the World Bank have successfully enabled secondary market trading recorded on blockchain for bond-i – blockchain operated new debt instrument.

In August 2018, the World Bank mandated CBA as the sole arranger of the bond-i, which is designed to test how blockchain technology might improve decades-old bond sales practices. During the same month, the World Bank raised $110 million via the bond-i blockchain platform, which was built and developed by the CBA Blockchain Center of Excellence.

The functionality to record secondary market trading data on a distributed ledger, developed by CBA in conjunction with World Bank and market maker TD Securities, reportedly illustrates the vast potential to enhance the co-ordination of securities trading and management on blockchain – delivering a verified, permanent record and instant reconciliation.

“Enabling secondary trading recorded on the blockchain is a tremendous step forward towards enabling capital markets to leverage distributed ledger technologies for faster, more efficient, and more secure transactions,” said World Bank Vice President and Treasurer Jingdong Hua. “It speaks to the innovation and commitment of all our partners, including investors, that we were able to achieve this together.”

Sophie Gilder, Head of Experimentation & Commercialisation, CBA Innovation Labs, claims that since issuing bond-i in August last year, the positive feedback and interest from the technology and financial sector community globally has been extraordinary.

“There is a growing recognition that blockchain technology can deliver a superior digital market for raising capital and then managing and trading securities, so we are working with our strategic partners to realise that vision,” said Gilder. “Blockchain has the potential to streamline processes for raising capital and trading securities, improve operational efficiencies, and enhance regulatory oversight.”