World Bank's Blockchain-Based Bonds

In what is being called a world first, the World Bank has ordered the creation of a blockchain-based bond through Australia's Commonwealth Bank.

The Blockchain Offered New Debt Instrument will be issued by the World Bank in Washington.

The project has been spearheaded by the World Bank, which is looking to use blockchain technology to improve the way it issues bonds around the world.

The World Bank has mandated the Commonwealth Bank of Australia as the sole arranger for bond-i, the first global bond to use distributed ledger technology.

The institution issues around $60 billion in bonds every year for sustainable development - and the bank says the move aims to explore the use of blockchain technology across different operations.

Matthew Di Ferrante, an independent developer who has worked for the Ethereum Foundation, told Cointelegraph the move is an elementary first step for the banking world and its use of blockchain applications.

A sign of things to come? This move by the World Bank would not have gone unnoticed by other financial industry leaders, and it certainly isn't the first time we've heard of financial institutions looking to use blockchain technology to improve their offerings.

One of the most perplexing questions is why the World Bank opted to go with CBA for this blockchain-based bond, where a country like Switzerland is one of the most liberal when it comes to cryptocurrency adoption.

With the World Bank making strides to leverage blockchain technology to overhaul current systems, is it just a matter of time before other big banks follow suit?

Cointelegraph has contacted both the World Bank and CBA for comment on the reasoning behind the partnership - and this article will be updated accordingly.