The World Bank has introduced FundsChain, a blockchain-based platform designed to track project funds and improve transparency in financial management. The system addresses challenges posed by the diverse and often disconnected financial management processes used by countries receiving World Bank support.
FundsChain uses blockchain technology to create a secure, unchangeable digital ledger accessible to all stakeholders involved in a project. This approach aims to provide up-to-date transaction records, enhancing efficiency, transparency, and accountability in how funds are managed and spent.
According to the World Bank, it is the first multilateral development institution to use blockchain for overseeing projects. The initiative is part of a broader effort to make operations more efficient and better serve clients and communities.
“FundsChain is a one-stop shop for financial reporting and transparent tracking. It quickly shows payments, contracts, and expenses, notifying suppliers the moment payments are ready, empowering teams to make timely, informed decisions and streamline project management,” said Lovella Tolentino-Morada, finance management specialist at the Metro Manila Development Authority.
The Philippines was among the first countries to adopt FundsChain through its use in the Metro Manila Flood Management Project. This $500 million initiative is funded by both the World Bank and the Asian Infrastructure Investment Bank with the goal of reducing flood risks in Manila by upgrading water infrastructure.
In Bangladesh, FundsChain is being piloted as part of the Bangladesh Resilience, Entrepreneurship and Livelihood Improvement Project. The $600 million program targets 3,200 villages with efforts such as supporting women entrepreneurs, covering pregnancy-related costs, improving sanitation facilities, and providing community assistance. Since its launch in 2021, over 115,000 people have been lifted out of poverty through this initiative.
“We are implementing FundsChain in 350 villages as a pilot. We are also implementing our Loan Management System (LMS) in all 3,200 villages of the project, providing laptops, and women leaders have been trained to use it. When FundsChain is linked with the LMS, they will be able to use it directly, and every village organization will become part of the process and can track funds transparently,” explained Mahbubul Alam, director of the project at the Social Development Foundation under Bangladesh’s Ministry of Finance.
Alam added that FundsChain helps his finance team by simplifying transaction records and digitizing information—an important factor given the large number of suppliers and beneficiaries involved.
FundsChain relies on technologies including cryptography and distributed ledgers using Hyperledger Besu software. This allows transactions related to each project to be permanently recorded by all parties involved. As a result, development partners can follow funds throughout each stage of a project’s lifecycle while preparing detailed execution reports for analysis.
International recognition has followed these efforts: In 2025 FundsChain received an award from the International Association for Trusted Blockchain Applications for public sector innovation. It was also featured in Citi’s Global Perspective and Solutions report highlighting its impact on modernizing financial systems.
To date FundsChain has been tested across 13 projects in 10 countries—Argentina, Bangladesh, Comoros Islands,Ethiopia, Kenya, Madagascar, Mauritius,Moldova,Mozambique,and Philippines—and plans call for expansion into approximately 250 projects across developing nations by June 2026.
As implementation grows across more regions,the focus remains on ensuring that development financing remains rapidand transparent,to achieve positive outcomes for peopleand their environments.