A blockchain-based proof-of-concept to streamline financial processes within Multilateral Development Banks (MDBs) has been unveiled by the Swiss National Bank (SNB), in partnership with the World Bank and the Bank for International Settlements (BIS) Innovation Hub. This is a major step toward modernizing the global financial infrastructure.
The initiative, dubbed Project Promissa, explores the use of tokenised promissory notes powered by distributed ledger technology (DLT). The goal: to eliminate cumbersome paper-based systems, reduce reliance on manual reconciliation, and cut administrative costs associated with managing multi-year financial commitments from member nations.
Traditional promissory notes—formal written commitments by member nations to provide funds over time—have been a mainstay of MDBs like the World Bank for decades. The system has proven ineffective, frequently beset by delays and reconciliation problems that put a load on operational resources, despite its theoretical effectiveness.
By rethinking the whole promissory note lifecycle—from issuance to payment to archiving—on a safe, open blockchain platform, Project Promissa seeks to overcome these issues. The pilot project’s digitization of these tools improves accountability, speeds up processing, and boosts efficiency.
Promissory notes remain a cornerstone of MDB funding, representing a substantial share of financial commitments from countries worldwide. Modernizing their management could have a far-reaching impact on global development financing.
While still in the trial phase, the success of this proof-of-concept signals a growing interest in how emerging technologies like blockchain can improve financial governance and collaboration among international institutions.
