The Commonwealth Bank of Australia (CBA) and the World Bank have launched the world’s first blockchain bond in the global sector this month. At this stage, institutional investors have begun to show a keen interest in the initiative. This collaboration between the World Bank and the Australian biggest bank, CBA, as they have issued the world’s first blockchain-bond which is based on the Ethereum blockchain network.
The blockchain-based debt instrument, Bond-I, executed the Microsoft’s blockchain cloud platform Azure which is compatible with the Ethereum network in a bid to settle orders after Microsoft had confirmed that Ethereum is enabled to securely convert investments into bond, with sufficient scaling as well.
The Commonwealth Bank of Australia manager, James Wall has reportedly stated that the Bond-I is a revolutionary achievement in the blockchain industry as it has projected the potential of the blockchain technology, most especially the Ethereum network in the conventional finance market. Wall stated that;
“We believe that this transaction will be groundbreaking as a demonstration of how blockchain technology can act as a facilitating platform for different participants.”
Institutional Investors’ Demand on the Rise
According to a recent report published by a local media outlet in Australia, Business Chief, the ingenious Bond-I has garnered support from about seven institutional investors after identifying the prospect of the initiative. The report went further to state that the initiative has recorded a drastic increase in demand from governments around the world, financial institutions, and several investment firms. The CBA manager, James Wall also stated in an interview that;
“Since announcing the mandate, the interest we’ve received for bond-i has been overwhelming. It is clear the market is ready and open to the uptake of emerging technologies and sees the potential evolution of the capital markets. It has been a pleasure to work on such a ground-breaking transaction with a forward-thinking organisation like the World Bank.”
It is glaring that the recorded success of the Bond-I project has been so overwhelming as it was earlier reported that the World Bank which is based in Washington DC has been able to amass a staggering $80 million in investment, which is owing to the short-term growth of the Ethereum-based bond.
Treasurer at the World Bank, Arunma Oteh has stated that the institution is contented with the rising demands from a high investor, the treasurer went further to indicate that the ingenious Ethereum-based bond appears to witness a warm reception from investors. She stated that;
“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 breadth of interest from official institutions, fund managers, government institutions, and banks. We were no doubt successful in moving from concept to reality because these high-quality investors understood the value of leveraging technology for innovation in capital markets.”
In the last two years, the major players in the blockchain technology development sector and technological institutions have spent billions of dollars yearly in order to deploy and commercialize blockchain system including getting virtual assets into mainstream, this is evident in the Seattle-based coffee giant, Starbucks agreeing to have a cryptocurrency section to convert digital currency to fiat currency.
The ingenious Bond-I seems to be the world’s first successful case of the commercialization of the public blockchain system like Ethereum in the conventional finance sector, and if the success story of the Bond-I continues, with records of more investor will most likely result into the adoption of blockchain system in the finance market at the global stage.
World Bank has also stressed the fact that the institution will continue to explore the capability and applicability of the blockchain technology perhaps in future with is encouraged by the adoption of Bond-I.