First bond issue on blockchain for QTC

By Owen Sanderson
25 Jan 2017

Queensland Treasury Corp ran a prototype bond auction on Commonwealth Bank of Australia’s blockchain platform, the bank said on Tuesday. QTC generated a bond tender, viewed investor bids in real time, finalised investment allocation and settled the dummy issue instantly — although it was on both sides of the deal, as sole issuer and investor.

According to a release from Commonwealth Bank of Australia, the bond contract is also recorded on the blockchain, and is a “smart contract” which pays coupons automatically. The issue is a “working prototype” which is not tradeable.

Plenty of start-ups and banks have worked on blockchain settlement ...

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