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World Bank Raises $33.8 Million in its Second Round of Blockchain-Based Bonds

Aug 20, 2019
byOmar Abbas

The World Bank has raised US$33.8 million in its second round of funding after settling US$81 million in blockchain bonds for the first time in 2018. The deal was jointly led by Australia’s Commonwealth Bank (CommBank), RBC Capital Markets, and TD Securities. A combination of existing and new investors participated in the second round.

According to CommBank, this is “the first bond created, allocated, transferred and managed through its life-cycle using distributed ledger technology.” The World Bank has issued over US$110 million of blockchain bonds on a private version of the Ethereum blockchain. The platform was developed by CommBank’s Blockchain Centre of Excellence.

Sophie Gilder, Head of Blockchain and AI at CommBank said last week’s press release that “CBA now has tangible evidence from our first bond offering using blockchain technology and subsequent bond management, secondary trading and tap issue via the same platform, that blockchain technology can deliver a new level of efficiency, transparency and risk management capability versus existing market infrastructure.”

Earlier this year, the World Bank partnered with CommBank to record secondary bond trading using blockchain technology. Gilder went to add that “Next we intend to deliver additional functionality to deliver greater efficiencies in settlement, custody and regulatory compliance.”