Commonwealth Bank of Australia is collaborating with the World Bank on the creation of a Ethereum-based platform for blockchain bond issuance.
The $AUD Kangaroo bond, termed ‘bond-i’ - Blockchain Offered New Debt Instrument - has been developed over the course of the past year with the support and input of the investor community including Northern Trust, QBE and Treasury Corporation of Victoria.
Once launched the bond will be issued and distributed on a blockchain platform operated by the World Bank and CBA in Washington and Sydney, respectively.
James Wall, executive general manager of Institutional Banking & Markets International, CBA says: “We believe that this transaction will be groundbreaking as a demonstration of how blockchain technology can act as a facilitating platform for different participants.”
CBA’s Blockchain Centre of Excellence, housed in the Sydney Innovation Labs, has taken a prominent role in applying blockchain technology to capital markets, including last year, partnering with Queensland Treasury Corp to test a prototype for bond issuance across a distributed ledger.