The largest bank in Australia, the Commonwealth Bank of Australia (CBA) received an order from the World Bank to fully translate the process of issuing bonds for blockchain, CBA press service reported.
CBA will be the first bank in the world to issue, transfer and control the execution of bonds on the blockchain. Kangaroo bond is a new, blockchain based debt fixing tool, managed and controlled by the World Bank and the CBA.
To implement this project, both financial institutions will use a private blockchain solution based on the Ethereum. In the future, the CBA will consider the possibilities of using other developing blockchain houses. Independent verification of the architecture, security and stability of the CBA blockchain system, conducted by Microsoft, did not reveal any vulnerabilities or errors.
“CBA IS AUTHORIZED TO BECOME THE ONLY ISSUER OF FIRST IN THE WORLD OF BONDS, WHICH WILL BE RELEASED, ALLOCATED, TRANSFERED AND MANAGED BY BLOCKCHAIN,” SAID IN A JOINT STATEMENT.
Representatives of banks believe that the blockchain has the potential to optimize the interactions between participants in the debt capital market. Technology can simplify the trading of securities and, at the same time, increase the effectiveness of control.
James Wall, Managing Director of the Institutional Banking and International Markets Department at CBA, said:
“WE BELIEVE THAT THIS STEP IS POSSIBLE TO PROMOTE EXCEPTIONAL SYSTEM OPPORTUNITIES AND TO SIMPLIFY THE PROCESSES OF COMMUNICATION AND EXCHANGE FOR ALL PARTICIPANTS.”
We will remind, in a lecture under the name “Cryptocurrencies and blockchain” published by the World bank, the countries of Europe and Central Asia are recommended more active to inculcate blockchain technologies for upgrading of services.
At the same time, Bank of Canada recently accounts for about the results of test blockchain project Jasper. There are the last results of leader experiment in area of DLT, starting in June, 2017, show that the up-diffused accounting records are an effective decision for automation of calculations on securities real-time.