World Bank’s Blockchain Bond Raises $110M AUD

News | August 24, 2018 By:

The Commonwealth Bank of Australia (CBA) has announced that the World Bank‘s Blockchain Offered New Debt Instrument (bond-i) has raised $110 million AUD ($80.48M USD). Investors in the bond include CBA, First State Super, NSW Treasury Corporation, Northern Trust, QBE, SAFA, and Treasury Corporation of Victoria.

Earlier this month, the World Bank mandated CBA as the sole arranger of the two-year bond, which is designed to test how blockchain technology might improve decades-old bond sales practices. The bond-i blockchain platform was built and developed by the CBA Blockchain Center of Excellence, housed in the Sydney Innovation Lab.

“Since announcing the mandate, the interest we’ve received for bond-i has been overwhelming,” said James Wall, Executive General Manager of IB&M International at CBA. “It is clear the market is ready and open to the uptake of emerging technologies and sees the potential evolution of the capital markets. It has been a pleasure to work on such a ground-breaking transaction with a forward-thinking organisation like the World Bank.”

The CBA said the deal marks the first time that investors have supported the World Bank’s development activities in a transaction that is fully managed using blockchain. The World Bank has been exploring the potential of disruptive technologies across all its operations. Last year, the World Bank launched a Blockchain Innovation Lab to study the impact of the technology in areas such as land administration, supply chain management, health, education, cross-border payments, and carbon market trading.

“I am delighted that this pioneer bond transaction using the distributed ledger technology, bond-i, was extremely well received by investors,” said Arunma Oteh, World Bank Treasurer. “We are particularly impressed with the breath of interest from official institutions, fund managers, government institutions, and banks. We were no doubt successful in moving from concept to reality because these high-quality investors understood the value of leveraging technology for innovation in capital markets.”