World Bank launches blockchain-based FundsChain to boost aid transparency

The World Bank Group has announced a landmark shift in how it manages and monitors development financing, becoming the first multilateral development bank to adopt blockchain technology for tracking project funds. The new tool, called FundsChain, represents a major leap toward transparency, accountability, and efficiency in global development financing.

From pilot to scale-up

FundsChain has already undergone successful trials across 13 projects in 10 countries, demonstrating its ability to strengthen oversight and streamline fund management. Following this pilot phase, the World Bank will extend the tool to around 250 projects by the end of fiscal year 2026 (June 30, 2026), marking its full-scale deployment.

The initiative is part of the Bank’s broader push to digitalize operations and ensure funds deliver measurable results. By leveraging blockchain, FundsChain provides a tamper-proof, mobile-accessible digital ledger where all financial transactions are recorded, visible, and auditable in real time.

Empowering communities and partners

“FundsChain allows everyone involved in a project – development partners, borrowers, auditors, and payment recipients – to track disbursements and monitor how funds are used,” said Anshula Kant, World Bank Group Managing Director and Chief Financial Officer.

She emphasized that the tool not only boosts accountability but also empowers communities by making financial flows more transparent. “It sets a new standard for transparency and accountability, empowers communities, and improves development results,” she said.

Addressing inefficiencies in current systems

Borrowers frequently rely on fragmented, paper-based systems to track payments, making it difficult to ensure accuracy and timely reporting. These methods can be both slow and prone to inefficiency, often resulting in months of delays for record keeping and reporting.

FundsChain addresses these weaknesses by automating and digitizing the process, reducing administrative burdens and improving trust in development financing.

Key features of FundsChain

The World Bank highlighted several core features that make the tool a game-changer in the realm of public finance management:

• Immutable digital ledger: Built on Hyperledger Besu, the blockchain records all transactions permanently, ensuring they cannot be altered or manipulated.

• Time savings: Reporting that once took months can now be completed in minutes, speeding up oversight and enabling faster decision-making.

• End-to-end visibility: Development partners and stakeholders can trace funds from the initial disbursement by the Bank to the final payment at the project level.

Toward more efficient development finance

“FundsChain demonstrates the power of innovative technology to boost the impact of our projects,” said Anna Bjerde, Managing Director of Operations at the World Bank. “This is part of a broader effort to make World Bank operations more efficient and streamlined, ultimately serving countries better.”

The World Bank has long championed the integration of digital solutions in development finance. FundsChain aligns with global efforts to modernize public financial management systems, reinforcing trust among donor countries, borrowing governments, and communities.

Broader implications for development transparency

As the tool scales up, observers note that FundsChain could transform not just the World Bank’s practices but also set a benchmark for other development banks, donors, and international institutions. In an era when scrutiny of aid effectiveness and transparency is rising, blockchain offers a new model for real-time, verifiable financial governance.

By combining cutting-edge technology with international development goals, FundsChain underscores how digital innovation can enhance impact, reduce corruption risks, and ensure that every dollar spent reaches its intended purpose.