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The adoption of blockchain technology by the traditional financial industry is getting closer, with plans for the world’s first bond that will be issued solely on a blockchain platform.

Last week, the World Bank announced that it has tapped the Commonwealth Bank of Australia (CBA) to arrange the first bond issuance that will only use a blockchain platform.

This is a credit positive for CBA, “because it shows the bank is making headway with significant fintech initiatives, which can help improve its operating efficiency and fend off new competition,” Moody’s Investors Services says in a report published Thursday.

According to the report, the bank will use the private ethereum blockchain platform to “create, allocate, transfer and manage a new debt instrument” that will be known as “bond-i.”

The World Bank reports that investor interest in bond-i “has been strong,” and that the banks expect to launch the transaction “following a period of consultation with a broader set of investors.”

The transaction will provide a platform for future debt issuance using blockchain technology. “The technology can be used for both registry and payment systems, consolidating payments by investors and title transfers by issuers into single, instant transactions,” the Moody’s report says. says.

“We know blockchain has the potential to revolutionize financial services and markets, and this transaction is a significant step towards that future state. By working collaboratively with the World Bank, we were able to find solutions to technical and legal considerations to make this ground-breaking transaction a reality,” says Sophie Gilder, head of blockchain, innovation labs at CBA, in a statement.