The World Bank has announced the launch of the world’s very first blockchain bond. The honour has been given to The Common Wealth of Australia who is expected to facilitate it in the coming months.

Dubbed as the bond-I or Blockchain Offered New Debt Instrument, the bond will be the first of its type to be created and managed on and over a blockchain platform. Blockchain is the tech that underpins Bitcoin and other cryptocurrencies and it also functions as a distributed ledger that is able to securely record all transactions that are made on or over it.

It has long been thought that blockchain technology has the potential to streamline a whole range of processes in the debt capital market, including but not limited to intermediaries and agents. This, in turn, will help simplify the process of raising capital, trading securities, as well as enhancing regulatory compliance and operational efficiencies.

When the bond is officially launched, it will be issued and distributed over a blockchain platform that will be jointly operated by the Commonwealth Bank of Australia and The World Bank.

So far, it seems that investor interest in the bond has been very strong and the bond is set for an official release after a wider consultation process with investors. Those that are advocating for the use of blockchain maintain that it has the power to make processes much faster and more secure, but there are still some that are dubious and believe it is nothing more than a bubble.

This latest news from the world’s leading financial authority will only boost the popularity of blockchain as well as giving it a much-needed vote of confidence. It seems that each day that passes, more and more leading names are turning to blockchain to solve solutions that they have long struggled with.

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