This is the first blockchain bond issuance by a government entity both in Australia and in the world. Queensland Treasury Corporation (QTC) generated a bond tender, viewed investor bids in real time, finalised investment allocation and settled instantly with investors using blockchain technology. QTC acted in both the issuer and investor role to test the end-to-end process for the issuance.
The QTC bond was created in digital form using smart contract technology, is a working prototype, therefore, not tradable, and does not carry any debt obligation.
The use of a decentralised digital ledger for a bond streamlines the issuance process, optimising the transparency of price and demand discovery during the bond’s bookbuilding process. The blockchain platform also simplifies the bond settlement process by acting as both the bond register and payment platform, consolidating the investors’ payment and the issuers’ title transfer into a single, instant transaction.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now