Commonwealth Bank of Australia (CBA) will continue its digital innovation by issuing the first bond created, allocated, transferred and managed on blockchain technology after being awarded the project by the World Bank.
In late July, CBA collaborated with Orient Overseas Container Line (OOCL) and a group of supply chain participants to track a shipment from Melbourne, Australia, to Hamburg, Germany.
Once launched, the ‘bond-I – Blockchain Offered New Debt Instrument’ will be issued and distributed on a blockchain platform operated by the World Bank and CBA in Washington and Sydney respectively.
Speaking about the project, James Wall, Executive General Manager of Institutional Banking and Markets International, CBA, said: “We believe that this transaction will be groundbreaking as a demonstration of how blockchain technology can act as a facilitating platform for different participants.
Sophie Gilder, Head of Blockchain, Innovation Labs, CBA, also commented: “We know blockchain has the potential to revolutionise financial services and markets, and this transaction is a significant step towards that future state.
“By working collaboratively with the World Bank, we were able to find solutions to technical and legal considerations to make this groundbreaking transaction a reality.”
Blockchain’s influence on the global supply chain continues to grow. On 9 August, Maersk, the world’s biggest container shipping line, and IBM announced a blockchain system designed to promote efficiency and global trade.