World Bank wants to be the first agency to release public obligations created and managed through blockchain technology. It will do with the partnership of Commonwealth Bank of Australia, the biggest trade bank in Australia and it contemplates to launch a 100 milions australian dollars issue of bonds.
Interest rate of bond-i
The bonds will have a maturity of two years and an interest rate of 2,251%. In the press release, the international organism advices that there is a significative investors interest in the blockchain based bond. The bond will named bond-i.
Bond-i: in few words
Given the charactestics of this technology (bond-i) – famous to be destinated to the cryptocurrency extraction like Bitcoin – using blockchain, in it should get a better operative efficiency.
The Bond-i can eliminate intermediators and agents in the trading of finanancial instrumens. This could help and semply the capital raising and trading in asset, getting a better operative efficency and have a better sight of the regolamentation and due diligenceThe goal is rapresented by in changing traditional processes in issue of bonds, in particular, an assignment in the register, an extended agreement, moving to a formula in wich the process is recorded in a instantaneous manner according to Reuters James Wall, CEO of CBA.
Issue of bond-i
The World Bank was one of the innovative agencies it lauched several bonds to finance some of it projects. Data from the entity indicates that they tipically issue around $ 50,000 or $ 60,000,000 in bonds (debt instruments) to raise funds for sustainable development.
History eletronic bond
Among the innovations launched on previous occasions during its 70 years of history, there is for example the first bonus in a global format, which was issued in 1989 or the first electronic voucher, issued in January 2000.
“Nowadays, we believe that emerging technologies offer equally transformative possibilities but more conservative, so that we can continue to innovate, respond to investor needs and strengthen the market”, explained Arunma Oteh, Treasurer and Vice President of the Bank in a statement world according to the CBA note.
“Therefore, we are delighted, after working for several months with our IT partners and with the Commonwealth Bank of Australia, that we are now in a position to launch our first bond block transaction. Cba’s commitment and the great experience of Microsoft have played a key role in achieving this goal, “he said.
The platform for the future blockchain bond-i bonus was built and developed by CBA through its Blockchain Center of Excellence center. Since 2009, CBA has been the lead manager of a series of World Bank bond issues in the capital markets of Australia and New Zealand.