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World Bank Sells $33.8 Million More of Its Private Ethereum Blockchain Bonds

World Bank Sells $33.8 Million More of Its Private Ethereum Blockchain Bonds

World Bank Sells $33.8 Million More of Its Private Ethereum Blockchain Bonds

The World Bank raised another $33.8 million by issuing bonds on a blockchain, bringing the total to $108 million.

The World Bank raised another $33.8 million by issuing bonds on a blockchain, bringing the total to $108 million.

The World Bank raised another $33.8 million by issuing bonds on a blockchain, bringing the total to $108 million.

AccessTimeIconAug 19, 2019, 6:30 PM
Updated Aug 18, 2021, 12:40 PM

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The World Bank has issued a second round of its landmark blockchain bonds.

The international financial institution raised another $50 million AUD ($33.8 million U.S.) by selling the "blockchain-operated debt instrument" (bond-i), according to Commonwealth Bank of Australia (CommBank), which managed the sale jointly with RBC Capital Markets and TD Securities.

Both new and existing investors participated, CommBank said.

All told, the World Bank has issued $160 million AUD ($108 million U.S.) of these bonds, which run on a private version of the ethereum blockchain. It is "the first bond created, allocated, transferred and managed through its life-cycle using distributed ledger technology," according to CommBank.

“We are happy to see the continued, strong support and collaboration from investors and partners," Andrea Dore, the World Bank's head of funding, said in a press release. "The World Bank’s innovation and experience in the capital markets is key to working with our member countries to increase digitization to boost productivity in their economies and accelerate progress towards the Sustainable Development Goals.”

The blockchain platform was built and developed by CommBank’s Blockchain Centre of Excellence.

“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 the existing market infrastructure," Sophie Gilder, head of blockhain and AI at CommBank, said in last week's release, adding:

"Next we intend to deliver additional functionality to deliver greater efficiencies in settlement, custody and regulatory compliance.”

A year ago, the World Bank announced the first $110 million AUD (roughly $81 million U.S. at the time) issuance of bond-i.

In May of this year, the World Bank and CommBank began to record secondary market bond trading using blockchain tech.

World Bank image via Shutterstock

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