The World Bank has asked Commonwealth Bank of Australia to create its first blockchain bond.
It will be known as Bond-i and will be issued in local currency.
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They will be the first bond to be created, allocated, transferred and managed with blockchain technology.
Blockchain is the distributed ledger technology that securely records all transactions made on the chain.
This bond will be jointly distributed on a blockchain platform managed by World Bank and CBA.
“We expect to see other issuers come to market soon,” said Paul Snaith, the World Bank’s manager of treasury asset and liability operations. “Already some central banks are assessing how they can use blockchain for settling transactions.”