Distributed ledgers continue to make their mark on the financial sector. Whether or not any real projects and products will come to market, remains a question very difficult to answer. World Bank and Commonwealth Bank of Australia join forces for a new venture. Their current goal is to issue bonds through a distributed ledger infrastructure.
There are many potential use cases for blockchain infrastructure in the financial sector. Whether or not that will lead to actual innovation, is a different matter. Interoperability between DLT and legacy systems is lackluster at best. Even so, new options need to be explored at any given moment. World Bank and CBA are doing exactly that through their new DLT-based bond issuance.
Another DLT Venture With Potential Consequences
Known as the $AUD Kangaroo Bond, this new debt instrument will be introduced to the market soon. It has been in development for nearly a full year. This further illustrates how difficult it is to merge blockchain with existing finance. Once the bond is issued, it will “live” on a blockchain operated by CBA and World Bank.
CBA’s James Wall adds the following:
“We believe that this transaction will be groundbreaking as a demonstration of how blockchain technology can act as a facilitating platform for different participants.”
Issuing a bond on the blockchain is a major milestone for the financial industry. It also shows how far these research projects have come. Although there is still a long way to go prior to seeing blockchain bonds make any real impact., this news come at an opportune time for the DLT industry. An interesting development to keep an eye on, that much is certain.