Blockchain Operated New Debt Instrument

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Context:

  • ‘Bond-i’, which stands for Blockchain Operated New Debt Instrument, was recently created, allocated and transferred using blockchain technology.

Other facts:

  • It is launched by World Bank and the Commonwealth Bank of Australia is the sole manager of the deal.
  • The World Bank has priced the world’s first public bond created and managed using the only blockchain in a $100 million
  • This World Bank bonds hold an AAA rating.
  • It 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.
  • The bank’s blockchain push comes as the Australian Securities Exchange plans to switch to using distributed ledger (blockchain) technology to clear and settle equities trades from 2020 to help cut costs.

Kangaroo bonds:

  • Kangaroo bonds are bonds issued in Australian dollars by foreign institutions.
  • Russia’s MTS, a telecoms operator, and Sberbank claimed a world-first blockchain bond.

Source:Livemint