World Bank launches world-first blockchain bond

The launch of the blockchain bond is being viewed as an initial step in moving bond sales away from manual processes towards faster automation. Photo: iStock

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Mains Paper 3: Science & Technology | developments & their applications & effects in everyday life

From UPSC perspective, the following things are important:

Prelims level: Bondi Bond, Blockchain

Mains level: Increasing use of blockchain technology in day to day applications


News

Using blockchain in bond markets

  1. The World Bank has priced the world’s first public bond created and managed using only blockchain in a $73.16 million deal
  2. This deal is designed to test how the technology might improve decades-old bond sales practices

About the bond

  1. The prototype deal dubbed as “Bondi” bond stands for Blockchain Operated New Debt Instrument as well as a reference to Australia’s most famous beach
  2. It is being viewed as an initial step in moving bond sales away from manual processes towards faster and cheaper automation

The uniqueness of this bond issue

  1. This issue of World Bank bond will be the first time that capital is raised from public investors through a legally valid bond issuance that uses blockchain from start to finish
Blockchain Technology: Prospects and Challenges
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