Blockchain bonds are gaining popularity as more players in the financial industry aim to improve efficiency and transparency. The island nation of Palau has partnered with blockchain services company Soramitsu to issue blockchain savings bonds to raise capital for infrastructure projects. Palau's government aims to reduce capital outflow and stimulate economic growth by enabling locals to invest domestically. The bond will be issued on a Hyperledger Iroha 2-based permissioned blockchain network. Meanwhile, Germany's WIBank has issued a €5 million bond on a public blockchain using central bank money to eliminate counterparty risk. Both developments highlight the growing interest in blockchain bonds while noting that the market remains relatively niche.



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