The Commonwealth Bank of Australia (CBA) and the World Bank launched the first blockchain bond in the global finance sector this month. Already, institutional investors are showing increasing interest.
On August 10, CCN reported that World Bank selected CBA, the biggest bank in Australia, to issue the world’s first blockchain bond based on the Ethereum blockchain network.
Bond-I, the blockchain-based debt instrument, implemented Microsoft’s blockchain cloud computing platform Azure that is compatible with the Ethereum network to settle orders, after Microsoft confirmed that Ethereum is able to securely facilitate investments into the bond, with sufficient scaling.
At the time, CBA general manager James Wall said that the Bond-I is a monumental breakthrough in the blockchain sector as it portrayed the potential of decentralized systems like Ethereum in the traditional finance market.
“We believe that this transaction will be groundbreaking as a demonstration of how blockchain technology can act as a facilitating platform for different participants,” Wall said.