The World Bank\u2019s International Bank for Reconstruction and Development has enabled secondary market trading of bonds on the blockchain, in partnership with Commonwealth Bankof Australia.\nThe ability to create and trade CBA\u2019s bond-i(blockchain operated new debt instrument) on a blockchain based platform makes the bond the first in the world whose issuance and trading are recorded using distributed ledger technologies.\n \nThe completion of secondary transactions with trading activity recorded on a distributed ledger illustrates the \u201cvast potential to enhance the co-ordination of securities trading and management on blockchain\u201d the organisations said.\n \nThe functionality of bond-i (pronounced as in the Sydney beach) was developed by CBA\u2019s Blockchain Centre of Excellence in conjunction with World Bank and market maker TD Securities. The bonds are issued and tracked using an associated platform which features an automated bond auction, bookbuild and allocation; electronic bid capture; an auditable and immutable transaction record; and real time updates and enhanced visibility according to participant\u2019s permissions.\n \nCBA and World Bank launched bond-i in August last year, the world\u2019s first bond to be created, allocated, transferred and managed through its life cycle using distributed ledger technology.\n \nInvestors in the bond included CBA, First State Super, NSW Treasury Corporation, Northern Trust, QBE, SAFA, and Treasury Corporation of Victoria.\n \n\u201cWe have nodes deployed in Sydney and in Washington, and between these two nodes we can deploy smart contracts such that we can automate actions between these two institutions without any manual intervention whatsoever,\u201d said Sophie Gilder, head of experimentation and commercialisation, CBA Innovation Labs.\n \n\u201cEffectively it was a seamless end to end platform which can take you from the issuance of a bond right through to secondary market trading of that bond through a trusted shared ledger,\u201d she explained.\n \nSince the August launch, feedback from the global technology and financial sector community has been \u201cextraordinary\u201d Gilder added.\n \n\u201cEnabling secondary trading recorded on the blockchain is a tremendous step forward towards enabling capital markets to leverage distributed ledger technologies for faster, more efficient, and more secure transactions,\u201d said World Bank vice president and Treasurer Jingdong Hua.\n \n\u201cIt speaks to the innovation and commitment of all our partners, including investors, that we were able to achieve this together.\u201d\n \nThe World Bank considers blockchain an integral part of its future strategy. It launched a Blockchain Innovation Lab in 2017, to understand the impact of blockchain and other disruptive technologies in areas such as land administration, supply chain management, health, education, cross-border payments, and carbon market trading.\n \nCBA has been exploring potential applications of blockchain technology since 2016, when it appointed Gilder as a dedicated head of blockchain. The bank has since completed more than 20 blockchain pilots across a range of industries in collaboration with clients, fintechs, banks and government.\n \nIn 2016, CBA, with Wells Fargo and Brighann Cotton completed what they claimed as the first global trade between two independent banks using blockchain and smart contract technologies. In 2017the bank ran a \u2018cryptobond\u2019 experiment, building a capital market issuance platform to facilitate the raising of capital through the issuance of bonds, on the blockchain. It was tested by Queensland Treasury Corporation for the issuance of semi-government bonds.\n \nIn June last year, CBA announced it had worked with five major supply chain players to trade and track seventeen tonnes of almonds as part of a blockchain-based experiment.\n \nIn September it revealed it had developed a blockchain-based platform with Ernst Young (EY) to enable high-value assets to be more easily shared between businesses.\n \nThe bank has also hinted at plans to import the \u201ccommercialised blockchain solution\u201d utilising theR3 Corda Distributed Ledger, which it has successfully trialled in South Africa.