Smart bond

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A smart bond is a special type of automated bond contract that uses the capabilities of blockchain databases that can function as cryptographically secure, yet open and transparent ledgers. It belongs to a class of financial instruments known as a smart contract , "a computerized transaction log that executes the terms of a contract."

history

As early as 2014, banking executives spoke publicly about the ability of the blockchain to trigger a significant "simplification of banking processes and the cost structure".

Starting in 2015, UBS experimented with smart bonds using the Bitcoin blockchain, in which "risk-free interest rates and payment flows can be fully automated, creating a self-paying instrument". The Huffington Post reported that an announcement of the UBS Smartbond service is expected in 2016.

In 2018, the World Bank commissioned the Commonwealth Bank of Australia to manufacture the world's first blockchain-based bond.

Individual evidence

  1. ↑ Don Tapscott , Alex Tapscott: The Blockchain Revolution: How the Technology Behind Bitcoin is Changing Money, Business, and the World May 2016, ISBN 978-0670069972 , pp. 72, 83, 101, 127.
  2. ↑ Anna Irrera: UBS CIO: Blockchain Technology Can Massively Simplify Banking . In: Wall Street Journal , October 27, 2014. Retrieved May 27, 2016. 
  3. ^ Rory Ross: Smart Money: Blockchains Are the Future of the Internet . In: Newsweek , September 12, 2015. Retrieved May 27, 2016. 
  4. ↑ David Wigan: Bitcoin technology will disrupt derivatives, says banker . In: IFR Asia , June 11, 2015. Retrieved May 27, 2016. 
  5. ↑ David Seaman: Ethereum: Here Come The Big Banks . In: Huffington Post , August 10, 2016. Retrieved August 11, 2016. 
  6. ↑ World Bank Mandates Commonwealth Bank of Australia for World's First Blockchain Bond , dated August 9, 2018