The World Bank and Commonwealth Bank of Australia are trumpeting the success of a project to record a secondary bond market trade on a distributed ledger.
The secondary trading application marks the next phase of the bond-i project, an Ethereum-based platform for blockchain bond issuance, built and developed by the CBA Blockchain Centre of Excellence, housed in the bank's Sydney Innovation Lab.
The World Bank last year raised A$110 million via a bond-i-issued bond, which was created, allocated, transferred and managed through its life cycle using distributed ledger technology.
The secondary trading application delivered a verified, permanent record and instant reconciliation of the trade, providing a faster, more secure and efficient transaction, says Sophie Gilder, head of experimentation & commercialisation, CBA Innovation Labs.
”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 realise that vision," she says. “Blockchain has the potential to streamline processes for raising capital and trading securities, improve operational efficiencies, and enhance regulatory oversight.”