World Bank to settle Bondi, a Blockchain Bond on Ethereum for $73 Million

by | Aug 24, 2018 | Blockchain

World Bank | Bondi | Ethereum | Blockchain Bond

The ‘world’s first public blockchain bond,’ has been priced ay AUD$100 million ($73 million) by the World Bank, in a settlement that will be finalized next week.

According to a report by the Reuters on Thursday, the Commonwealth Bank of Australia (CBA) will settle the two-year bond on August 28. The Blockchain bond is aimed to improve the efficiency of automated financing for countries with extreme poverty by moving away from the decades-old manual bond sales process.

Bondi

The Blockchain Operated New Debt Instrument is named Bondi, as a subtle nod to Australia’s famous Bondi beach. Priced to yield a 2.251% return, CBA will be the sole arranger of the bond. According to the CBA report “the bond was engineered for the “kangaroo” deal (bonds issued in Australian dollars by overseas institutions) at 23 basis points above Australia’s benchmark rates.”

Despite the existence of similar pilots or prototypes powered by blockchain, the CBA insists that Bondi marks the first occasion wherein a legally valid bond issuance is completely issued and managed on a blockchain – raising capital from public investors.

On an annual average, the World Bank issues between $50 billion-$60 billion in bonds for sustainable development in emerging nations. As per a previous report by CCN, Bondi will be operated by the World Bank in Washington and the CBA, in Sydney and will be issued and managed on a private Ethereum blockchain. To run the bond stateside, the World Bank will use Microsoft’s cloud computing platform. The World Bank previously said that Microsoft has already validated Ethereum’s “capabilities, security, and scale” for the bond issuance.

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

Get Latest Bitcoin and Crypto News

advertisement advertisement

Get latest Bitcoin & Cryoptocurrency News

 

Subscribe to our newsletters to get latest Bitcoin and Cryptocurrency news.

Thank you !