Even the goddamn World Bank isn’t immune to blockchain hype: it has mandated that the first ever bond be issued via blockchain.
The Commonwealth Bank of Australia (CBA) will be issuing what’s being called “the Kangaroo bond.” Bonds are used by businesses to raise capital – when investors buy them, they are essentially loaning money directly to the issuer.
The debt is repaid over time, typically with a bunch of extra dividends.
To set it apart from the traditional concept, the banks are calling their spin on it ‘bond-i’ – an acronym that stands for “blockchain operated new debt instrument.”
“Blockchain has the potential to streamline processes among numerous debt capital market intermediaries and agents,” a joint press release reads.
“This can help simplify raising capital and trading securities, improve operational efficiencies, and enhance regulatory oversight.”