The World Bank Group is dramatically enhancing the transparency and efficiency of its financial tracking by becoming the first multilateral development bank to deploy a blockchain-based tool for funds traceability. The new tool, called FundsChain, is designed to transform how funds are tracked across development projects globally.
FundsChain has successfully completed testing across 13 projects in 10 countries and is now set for major expansion. The World Bank Group plans to scale up the tool and extend its use to approximately 250 projects by the end of the fiscal year, June 30, 2026, aligning with the institution’s goals of digitalization and efficiency.
Setting a New Standard for Transparency
The platform leverages distributed ledger technology to create a mobile-accessible, tamper-proof record of all transactions, addressing common issues of manual tracking, fragmented systems, and paper-based records relied upon by many borrowers.
Anshula Kant, Managing Director and World Bank Group Chief Financial Officer, said: “FundsChain allows everyone involved in a project – development partners, borrowers, auditors, and payment recipients – to track disbursements and to monitor how funds are used. It sets a new standard for transparency and accountability, empowers communities, and improves development results.”
The technology integrates cryptography and distributed ledgers to streamline and automate records. This efficiency is expected to boost the overall impact of the Bank’s work.
Anna Bjerde, Managing Director of Operations at the World Bank, said: “FundsChain demonstrates the power of innovative technology to boost the impact of our projects. This is part of a broader effort to make World Bank operations more efficient and streamlined, ultimately serving countries better.”
Key Features and Benefits
FundsChain is built on Hyperledger Besu and offers several transformative features for project management and oversight:
- Immutable Digital Ledger: Transactions stored by all parties involved in World Bank-financed investment projects are recorded permanently and cannot be altered, ensuring integrity.
- Saves Time: The tool significantly reduces record-keeping and reporting efforts, with some reporting tasks now completed in minutes instead of months.
- Offers End-to-End Visibility: Development partners gain the ability to track the use of funds from the initial disbursement all the way to the final payment recipient.
