The Israeli Ministry of Finance, together with the Tel Aviv Stock Exchange, digital assets custody provider Fireblock and VMware, will conduct the testing of a blockchain-backed platform for digital bonds trading. These bonds will be issued by the Ministry of Finance.
Coming under the name Eden, the new project is intended to reduce costs and optimize the procedure of national bonds issuance. During the live test, the participating banks will receive a new series of tokenized government bonds on their e-wallets via the project platform, transferring the money held in digital currencies to the e-wallet of the Israeli government. There is no information about the specific digital currencies that are going to be used in the live test. The pilot project is expected to be completed by the end of Q1 2023.
The list of countries and international bodies that have digitalized their bonds is not long. The World Bank for Reconstruction and Development and the Commonwealth Bank of Australia became pioneers back in 2018, raising $110 million for two-year blockchain bonds. In 2021, the European Investment Bank followed the path by issuing 100 million euros in digital bonds.
