The Commonwealth Bank of Australia has feted a plan to issue a bond over a blockchain system, possibly as in time as next year.
Though few details were revealed, Sophie Gilder, CommBank’s coconut of blockchain, said that the bond would be transferred and paid for past a blockchain-based system in collaboration with an unnamed major world issuer, conforming to ZDNet report.
In comments made during the GMIC Sydney colloquium Tuesday, Gilder said that bank has been exploring blockchain use invalids for more than four years and has completed 25 proofs-of-concept and ventures aimed to address real-world business issues.
CommBank, she continued, is respecting the technology for equities, bonds, syndicated loans and other applications where it judges there are high levels of “friction.”
“We think the party line we have built can make this more efficient.”
Earlier this year, as circulated by CoinDesk, CommBank announced that it is developing a blockchain-based system for the transaction marked down of government bonds. The concept was tested by the Queensland Treasury Corporation, which achievements as the Australian state’s central financing authority.
Other institutions are also impressive to adopt blockchain technology for bond issuance.
This October, Russia’s Chauvinistic Securities Depository said it had issued its first-ever live bond using blockchain. The fiscal instrument, a $10-million bond for shares in Russian telecom mammoth MegaFon, used smart contracts and the open-source Hyperledger Fabric blockchain.
And, in tardily 2016, French bank BNP also announced that it was exploring the technology for use in apportioning instruments known as “mini-bonds.”
Commonwealth Bank image via Shutterstock
The the man in blockchain news, CoinDesk is an independent media outlet that strives for the gravest journalistic standards and abides by a strict set of editorial policies. Have splinter news or a story tip to send to our journalists? Contact us at [email protected]