The results of the joint initiative between the Commonwealth Bank of Australia (CBA) and the World Bank are in. The newly created Blockchain Operated New Debt Instrument has found success, and $80 million, since its launch.
Starting with the humble almond, the Commonwealth Bank of Australia (CBA) has continued its experimentation with blockchain technology which has resulted in the CBA launching the world’s first blockchain bond – bond-i.
One of its partners in this collaboration, the World Bank, has now announced that the launch of the initiative has been a resounding success. Reuters has reported that the tool helped raise more than $80 million for the global financial institution thus far.
The Future of Bonds
The bond-i, which is an acronym for Blockchain Operated New Debt Instrument, was developed to help modernize, streamline, and automate outdated sales processes. In addition to the funds raised, the tool has also garnered a high amount of positive attention. Arunma Oteh, who is the World Bank Treasurer, said:
I am delighted that this pioneer bond transaction using the distributed ledger technology, bond-i, was extremely well received by investors. We are particularly impressed with the breath of interest from official institutions… these high-quality investors understood the value of leveraging technology for innovation in capital markets.
In addition to the CBA and the World Bank, the investors involved in this project are the Northern Trust in the US, three Australian state governments, and Australia’s First State Super pension fund.
Each bond that is carried by the World Bank has an AAA rating, which is the highest possible rating. This has allowed the bank to assist developing economies by issuing bonds valuing more than $50 billion per year. These funds could be used to create new bond markets as well as diversifying trading methods for securities.
A Country Embracing Blockchain
This success is just another feather in the country’s cap when it comes to blockchain and even cryptocurrency adoption and ongoing interest. Holders in Australia can now use virtual currencies to settle their bills in an exciting venture involving Cointree and Gobbill. This could, of course, be a major push for everyday adoption in not only Australia but eventually the whole world. We could even see the country open the very first cryptocurrency bank in the not too distant future.
The country has also allocated a substantial amount in funding to ensure that they are, or perhaps remain, on the cutting edge of the technology.
Do you think that Australia has the potential to be the next crypto- and blockchain hub? Let us know in the comments below!
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