The Government of Palau has taken a significant step towards modernising its financial infrastructure with the launch of a blockchain-based savings bond prototype system, Palau Invest, developed in collaboration with Soramitsu and Japan’s Ministry of Economy, Trade, and Industry (METI). This initiative is part of METI’s “Global South Future-Oriented Co-Creation Project,” showcasing Japan’s ongoing support for emerging economies through cutting-edge technology. The project promises to secure Palau’s financial future by offering its citizens a new, accessible means to invest in national development while earning returns.
The new savings bonds provide Palauans with an opportunity to invest directly in their country’s growth. The capital raised will fund essential national projects, from infrastructure improvements to housing and small business development, designed to drive economic growth and enhance public welfare. Palau’s President, Surangel Whipps Jr., highlighted the initiative’s potential for economic stimulation, pointing out its focus on creating jobs, improving business opportunities, and fostering a more dynamic national economy.
Finance Minister Kaleb Udui Jr. echoed these sentiments, describing the digital savings bonds platform as part of a broader effort to strengthen the nation’s financial systems and increase access to investment opportunities for all Palauans. The platform’s public demonstration phase has already commenced, allowing citizens to explore the system before the official bond issuance, which will be facilitated through a mobile app once the bond criteria are finalised.
Palau Invest runs on the SORA v3 Hub Chain’s Hyperledger Iroha 2-based network, an open-source blockchain platform that ensures efficient and cost-effective handling of Palau’s financial transactions. This technological application represents a vital shift towards modernising the country’s financial landscape, increasing accessibility to financial products, and driving broader economic progress.
Soramitsu, a global leader in blockchain-based financial solutions, has successfully implemented similar systems across the Asia-Pacific region, including in Cambodia and the Solomon Islands. The launch of Palau Invest marks another milestone in the company’s ongoing efforts to use blockchain technology to address societal challenges and enhance financial inclusion.
