The World Bank Group has introduced a blockchain-based tool, FundsChain, to improve the tracking of funds in development projects. This move marks the first time a multilateral development bank has used blockchain technology for fund traceability, aiming to increase transparency in public financial management.
FundsChain has already been tested in 13 projects across 10 countries and is set to expand to about 250 projects by June 30, 2026. The tool aligns with the World Bank Group’s ongoing efforts toward digitalization and operational efficiency.
“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,” said Anshula Kant, Managing Director and World Bank Group Chief Financial Officer.
Traditional methods for tracking payments often involve manual processes or fragmented systems that can be inefficient for both borrowers and the World Bank. FundsChain addresses these challenges by automating records through technologies such as cryptography and distributed ledgers. The platform is accessible via mobile devices and ensures that all transactions are tamper-proof.
“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,” said Anna Bjerde, Managing Director of Operations at the World Bank.
Key features of FundsChain include an immutable digital ledger using Hyperledger Besu technology, which permanently records transactions made by all parties involved in investment projects financed by the World Bank. The tool also reduces record-keeping time significantly; some reporting tasks now take minutes instead of months. Additionally, it provides end-to-end visibility so that development partners can follow funds from initial disbursement through final payment.
For more information about FundsChain or related resources, visit www.worldbank.org/fundschain or contact World Bank Media Relations at +1 (202) 473 7660 or press@worldbank.org.