The World Bank recently completed the second round of its blockchain-based crowdfunding campaign. This go-around, the firm secured $33.8 million from a variety of investors. The news showcases the rising involvement of major financial institutions in the space.
In a recent interview, the funding head at the World Bank, Andrea Dore discussed the monumental progress his team accomplished so far. He pointed out that the Bond-i is the first bond to live fully within a distributed ledger ecosystem (DLT).
Discussing the decision, Andrea Dore, he praised the innovative atmosphere surrounding the project. He also spoke on the experience gained by his company from the project. He ended by stressing the importance of creating sustainable development goals in the sector.
The Bond-i functions on a private blockchain built by CommBank's Blockchain Centre for Excellence. This corporate blockchain borrows much of its technical structure from the Ethereum blockchain. Ethereum-based (ERC) tokens are the most popular in the market.
The Bond-i is unique because it is issued, allocated, managed, and transferred completely on this private blockchain. Speaking on the use of this new technology, CommBank's head of blockchain and artificial intelligence, Sophie Gilder discussed the advantages of this all-inclusive strategy.
Gilder explained that blockchain technology proved to be more transparent, efficient, and manageable than the current systems in use. She went on to describe how the company intends to develop this technology further and deliver additional functionality in the future.
A Team Effort
In order to make this advantageous strategy a reality, the World Bank sought out strategic partnerships. Notably, the Commonwealth Bank of Australia was the actual issuer of the bonds. Additionally, TD Securities and RBC Capital played important roles in the campaign.
World Bank STO Continues
In 2017, the first round of tokenized bonds netted the World Bank around $81 million USD in funding ($110 AUD). Added to the latest campaign, the World Bank raised approximately $108 million USD to date.
These bonds issued on behalf of the Queensland Treasury Corporation (QRC). Importantly, this was the first time a crypto bond issuance took place with a government agency. The primary fundraising campaign went flawlessly. QTC was able to monitor bids, allocate funds, and settle transactions in real-time via the new system.
Australia is Pro-Crypto
There are a number of factors which made the campaign a success. Primarily, Australia has long been a supporter of blockchain technology. Back in 2016, the International Organization for Standardization chose the country to lead a multi-national team of researchers seeking to standardize blockchain protocol. Also, in July of this year, the country saw the opening of its first Blockchain Charity – New South Wales Charity.
It's a Movement
The World Bank is sure to see more success in the future as the company is perfectly positioned to expand its blockchain implementation further. The combination of a pro-blockchain regulatory climate and a pioneering team is enough to give the World Bank a strong lead in the sector.