Israel's Ministry of Finance and the Tel Aviv Stock Exchange (TASE) are preparing to issue a blockchain-based digital state bond.
The Israeli government and TASE are partnering with digital asset infrastructure firms Fireblocks and VMWare to perform live testing of a new platform using smart contracts and tokenization for the trading and clearing of digital bonds.
The live test will see units of the digital bond issued to e-wallets of the acquiring participants, paid for in digital currency which will be transferred to the Israeli government's e-wallet.
The government and TASE's aim is to streamline processes, reduce costs and shorten the duration of issuance and clearing of state bonds.
"The current project kicks off the journey into this new world, allowing a first and important foothold that will serve as the foundation for the upgrading of other traditional mechanisms down the road," they said Wednesday.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.