First World Blockhain Bond is to Appear in Australia

Commonwealth Bank of Australia (CBA) under the leadership of the World Bank will issue the first world's blockchain bond, in other words, public bonds on the blockchain.

The total amount of the issue will be $ 73.16 million. It is expected that this will be a test of how the technology can improve the long-term practice of selling bonds. The project will be based on the Ethereum blockchain.

CBA also said that the yield of two-year bonds will be 2.251%, and the issue of securities dubbed “Bondi” (an abbreviation of the English phrase “Blockchain operated new debt instrument”) will start on August, 28.

CBA claims that unlike other similar projects “Bondi” issue is the first case of bonds turnover created on the blockchain, which implicates capital from state investors.

James WALL, executive general manager at CBA, says:

“You’re collapsing a traditional bond issuance from a manual bookbuild and allocation process, an extended settlement then a registrar and a custodian, into something that could happen online instantaneously”.

It’s worth noting that the World Bank bonds have an AAA rating (the highest level of reliability). The Bank issues $50-60 billion of bonds annually to support economic progress in developing countries.