FundsChain Explained: How the World Bank Is Using Blockchain for Trust

The World Bank is adopting blockchain technology to improve how development funds are tracked and reported. Through a platform called FundsChain, the institution creates a shared digital record of how money moves from approval to final payment. This system strengthens transparency and accountability across borders. 

Key Takeaways

• FundsChain records project spending on a tamper-proof blockchain ledger
• All authorised stakeholders can view the same real-time financial data
• The platform is expanding to hundreds of World Bank projects by 2026

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How FundsChain Uses Blockchain to Track Public Funds

Tracking development funds has long been a challenge. Once money is disbursed, it flows through different national systems that rarely connect with one another. Reporting is often slow, fragmented, and difficult to verify.

FundsChain addresses this by creating a single digital ledger for each project. Every transaction is recorded permanently and shared with authorised participants. This removes the need for repeated reconciliation between systems and reduces disputes over financial data.

The platform is built on Hyperledger Besu, a permissioned blockchain designed for institutional use. Access is controlled, but records cannot be altered once confirmed. Payments, contracts, and expenses are all time-stamped, making audits simpler and more reliable.

Rather than experimenting with technology for its own sake, the World Bank uses blockchain here as a practical tool. The goal is straightforward: clearer records, faster reporting, and stronger trust between all parties involved.

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Real World Impact on Projects and Communities

The benefits of FundsChain are already visible in live projects. In the Philippines, it supports the Metro Manila Flood Management Project, a major infrastructure effort involving multiple funding partners. Real-time access to financial data helps teams track payments, manage suppliers, and reduce administrative delays.

In Bangladesh, FundsChain plays a role in a large community-focused programme aimed at improving livelihoods in thousands of villages. By linking blockchain records with local financial systems, village organisations can directly track how funds are allocated and used.

This visibility empowers local leaders and reduces reliance on centralised intermediaries. For finance teams, digital records simplify reporting across projects with many beneficiaries and suppliers.

In these cases, blockchain quietly improves coordination and accountability, supporting development outcomes without disrupting existing workflows.

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Scaling FundsChain and the Future of Development Finance

FundsChain has been tested in 13 projects across 10 countries, including Kenya, Ethiopia, Bangladesh, and the Philippines. Based on these results, the World Bank plans to scale the platform to around 250 projects by June 2026.

The initiative has received international recognition for public sector innovation, reflecting growing interest in blockchain beyond cryptocurrency markets. Governments are also responding. Nigeria, for example, has confirmed the rollout of FundsChain as part of reforms to strengthen oversight of donor-funded projects.

This shift signals a broader change in development finance. Instead of relying only on periodic audits, blockchain enables continuous financial visibility. Over time, this could mean faster disbursements, fewer errors, and stronger confidence among donors and recipients alike.

FundsChain shows that blockchain can support long-term institutional goals while remaining stable, practical, and focused on public value.

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Conclusion

FundsChain demonstrates how blockchain can be used responsibly in global finance. By creating a shared, tamper-proof record of development spending, the World Bank is improving transparency and trust across complex projects. 

As the platform expands, it may become a reference model for how technology supports accountability at scale. Rather than transforming finance overnight, FundsChain improves it step by step, with clear benefits for institutions and communities alike.

FAQ

What is FundsChain?

FundsChain is a blockchain platform developed by the World Bank to track project funds securely and transparently.

Does FundsChain use cryptocurrency?

No. It uses blockchain technology without issuing or trading any digital tokens.

Why is blockchain useful for development projects?

Blockchain creates permanent records that improve transparency, reduce errors, and simplify audits.

How widely is FundsChain used?

It has been piloted in 13 projects and is expected to expand to about 250 projects by 2026.

Which countries are using FundsChain?

Countries include Bangladesh, the Philippines, Kenya, Ethiopia, and Nigeria.

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Cryptocurrency investments involve risk, and readers should conduct their own research before making financial decisions.