I managed Project Genesis (Phase 1) at the BIS Innovation Hub Hong Kong Centre as project lead. Project Genesis developed two prototypes, one using the Stellar blockchain and another using the DAML framework, to introduce tokenised green bonds in small denominations, thereby giving greater access to retail investors. Such retail mobilisation may help give wider demand to a sustainable asset class with low risk characteristics as well as foster ownership and support of green projects.
The project also integrated real-time tracking, using IoT and DLT technology, as well as disclosure of green output for investors via mobile apps, thereby showcasing technologies that can be used to reduce greenwashing and increase transparency.
Three project reports with detailed information on Project Genesis as well as the two prototypes developed can be found on the BIS project page. Further information on milestones reached, such as a showcasing Project Genesis in a live panel discussion during Hong Kong FinTech Week 2021 and a presentation at COP26, are provided further below.
The second Advisory Panel Report Meeting for Project Genesis took place on 2 July. You will read about the topics agreed on in that meeting in a forthcoming visionary report.
The first prototype simulates the lifecycle of a typical bond on a permissioned distributed ledger platform, including origination, subscription, settlement and secondary trading. The prototype is able to considerably streamline these processes.
A second prototype with similar capability uses a public blockchain infrastructure. It also streamlines the investor onboarding and facilitates the direct payment and settlement between the issuer and investor.
Project Genesis was concluded with a fifth Advisory Panel meeting during which both prototypes were presented to all Genesis participants.