World Bank and CBA to Record Bond Trading Data on Blockchain
- Last year, both institutions issued a blockchain-based debt instrument called bond-i.
The World Bank and Sydney-headquartered Commonwealth Bank (CBA) have enabled the functionality to record secondary market trading data for its Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term Offered New Debt Instruments (bond-i) on a distributed ledger.
The functionality was developed by the CBA in conjunction with the International Bank for Reconstruction and Development, one of the two wings of the World Bank, and market maker TD Securities. With this, it became the first bond issuance and trading that was recorded using a blockchain.
Commenting on the development, Jingdong Hua, vice president and treasurer at the World Bank, said: “Enabling secondary trading recorded on the blockchain is a tremendous step forward towards enabling capital markets to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term distributed ledger technologies for faster, more efficient, and more secure transactions. It speaks to the innovation and commitment of all our partners, including investors, that we were able to achieve this together.”
First bond on the blockchain
Bond-i was issued last year on a public Ethereum after a collaboration between the World Bank and the CBA. As reported by Finance Magnates earlier, the Australian bank was the sole arranger of the bond, and even the blockchain platform was developed at the CBA Blockchain Centre of Excellence.
“Since issuing bond-i in August last year, the positive feedback and interest from the technology and financial sector community globally has been extraordinary,” Sophie Gilder, head of experimentation and commercialization at CBA Innovation Labs, said.
At the time of issuance, the bond was assigned an AAA rating and was used to raise capital for the World Bank’s Reconstruction and Development division.
Meanwhile, established institutions around the globe are also betting heavily on blockchain technology. Earlier this year, the London Stock Exchange (LSE) entered the enterprise blockchain market by investing in a bond tokenization startup.
“There is a growing recognition that blockchain technology can deliver a superior digital market for raising capital and then managing and trading securities, so we are working with our strategic partners to realize that vision,” Gilder added. “Blockchain has the potential to streamline processes for raising capital and trading securities, improve operational efficiencies, and enhance regulatory oversight.”
The World Bank and Sydney-headquartered Commonwealth Bank (CBA) have enabled the functionality to record secondary market trading data for its Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term Offered New Debt Instruments (bond-i) on a distributed ledger.
The functionality was developed by the CBA in conjunction with the International Bank for Reconstruction and Development, one of the two wings of the World Bank, and market maker TD Securities. With this, it became the first bond issuance and trading that was recorded using a blockchain.
Commenting on the development, Jingdong Hua, vice president and treasurer at the World Bank, said: “Enabling secondary trading recorded on the blockchain is a tremendous step forward towards enabling capital markets to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term distributed ledger technologies for faster, more efficient, and more secure transactions. It speaks to the innovation and commitment of all our partners, including investors, that we were able to achieve this together.”
First bond on the blockchain
Bond-i was issued last year on a public Ethereum after a collaboration between the World Bank and the CBA. As reported by Finance Magnates earlier, the Australian bank was the sole arranger of the bond, and even the blockchain platform was developed at the CBA Blockchain Centre of Excellence.
“Since issuing bond-i in August last year, the positive feedback and interest from the technology and financial sector community globally has been extraordinary,” Sophie Gilder, head of experimentation and commercialization at CBA Innovation Labs, said.
At the time of issuance, the bond was assigned an AAA rating and was used to raise capital for the World Bank’s Reconstruction and Development division.
Meanwhile, established institutions around the globe are also betting heavily on blockchain technology. Earlier this year, the London Stock Exchange (LSE) entered the enterprise blockchain market by investing in a bond tokenization startup.
“There is a growing recognition that blockchain technology can deliver a superior digital market for raising capital and then managing and trading securities, so we are working with our strategic partners to realize that vision,” Gilder added. “Blockchain has the potential to streamline processes for raising capital and trading securities, improve operational efficiencies, and enhance regulatory oversight.”