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The World Bank is preparing for the world's first blockchain bond

The World Bank has mandated Commonwealth Bank of Australia to arrange the world’s first blockchain bond.

joint release from the two organizations said.

When launched, the bond will be both issued and distributed on a blockchain platform operated by the World Bank and CBA.

A private Ethereum-based blockchain is in use for the project as it has the necessary capabilities, but CBA said that it was open to other options in the future as the space develops.

The World Bank, meanwhile, said investor interest in the bond has thus far been strong. Together with CBA, it intends to launch the transaction after wider consultation with more investors.

Advocates of blockchain technology say it makes processes faster and more secure, but some are concerned amid hype around the technology’s potential that the intense fanfare could potentially lead to a bubble.

— CNBC’s Saheli Roy Choudhury contributed to this report.

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