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Story Highlights
- FundsChain, a blockchain-based platform, enables the World Bank to improve traceability, accountability, and streamline operations when tracking the use of funds.
- Key features include tamper-proof digital records, end-to-end tracking of project funds, granting project partners immediate access to transaction records, and the use of digitization to enhance financial management practices.
- The solution has been successfully tested in 13 projects across 10 countries, earned industry recognition and by June 2026, it is expected to cover approximately 250 projects in developing countries.
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After the World Bank disburses funds for a project, tracking how those funds are used is of utmost importance. Countries use a wide variety of financial management systems and processes, which are not standardized and seldom share information across platforms. To address these issues, the World Bank is rolling out FundsChain.
This proprietary platform uses blockchain technology to track every dollar on a secure, immutable digital ledger that can be accessed by all project stakeholders. [tweetquote:[tweetText=By offering broader access to up-to-date transaction records, FundsChain is greatly enhancing efficiency, transparency, and accountability.,tweetData=WorldBank,tweetHash=]]
As the first multilateral development institution to implement blockchain for project oversight, the World Bank is leading the way in future-ready financial management.
Impact on financial management and communities
The use of FundsChain to track project funds is part of a broader effort to make World Bank Group (WBG) operations more efficient and streamlined, ultimately better serving 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 one of the early adopters of FundsChain, which was rolled out to the Metro Manila Flood Management Project, a $500 million initiative funded by the World Bank and the Asian Infrastructure Investment Bank. The project aims to reduce Manila’s vulnerability to floods by upgrading water infrastructure.
In Bangladesh, FundsChain is being used in the Bangladesh Resilience, Entrepreneurship and Livelihood Improvement Project. This initiative targets 3,200 villages to help women launch entrepreneurial ventures, cover pregnancy-related expenses, improve sanitation, and provide wider support for the community. Since the $600 million project began in 2021, it has helped lift more than 115,000 people out of poverty.
“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, an autonomous organization under the Financial Institutions Division of the Ministry of Finance.
Alam underscored that FundsChain is also benefiting his finance management team by simplifying transaction records and digitalizing all project-related information, something especially important in a project with many suppliers and beneficiaries.
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00:04 When transactions are transparent,
00:06 you see things more clearly,
00:08 which makes all the difference in the world,
00:11 especially in our world.
00:13 At the World Bank,
00:14 we put transparency and accountability at the forefront of our work.
00:18 That's why we've introduced Funds Chain,
00:20 our blockchain initiative that provides end
00:22 to end traceability on development projects,
00:25 so stakeholders can see where disbursements are going
00:27 and how they're being used.
00:29 Through the power of our blockchain platform,
00:31 all stakeholders from development partners to borrowers,
00:35 auditors.
00:35 And and beneficiaries have greater access to trace funds dispersed.
00:40 When a transaction is recorded on the blockchain platform,
00:43 it's immediately visible to stakeholders,
00:45 it's permanent and tamper-free,
00:47 and
00:48 it provides unique opportunities to leverage existing operational and financial
00:52 systems to automate cross-organizational processes
00:55 and promote strategic collaboration.
00:58 Here's how funds chain benefits all.
01:00 It creates a vehicle to modernize public financial management
01:04 by transforming the level of transparency and accountability of funds dispersed
01:09 for borrowers,
01:09 intermediaries such as local governments and the UN agencies,
01:13 suppliers,
01:13 and ultimately beneficiaries.
01:15 It increases opportunities to automate and digitize,
01:18 which leads to increased efficiencies,
01:20 timely disbursements,
01:21 and elimination of manual.
01:23 Processes and paper records that can be tampered with or destroyed
01:27 for the World Bank and its donors,
01:29 funds chain enhances traceability and
01:31 controls and provides additional assurance
01:33 that the bank's funds are used for their intended purpose
01:36 and for auditors,
01:37 it provides access to complete and accurate transaction records electronically,
01:42 which eases the burden of maintaining and providing audit evidence.
01:46 With Funschain,
01:47 the World Bank increases the efficiency and impact
01:49 of development projects through traceability and accountability,
01:53 offering our stakeholders the latest advancements in
01:56 digitization,
01:57 efficiency,
01:58 traceability,
02:00 transparency,
02:01 accountability,
02:03 timely monitoring,
02:04 trust in developments.
02:08 The World Bank's funds chain,
02:10 transparency transcends.
How does FundsChain work?
[tweetquote:[tweetText=FundsChain integrates technologies such as cryptography, distributed ledgers, and the internet to provide a secure and immutable platform for all types of transactions.,tweetData=WorldBank,tweetHash=]] It uses Hyperledger Besu, a blockchain solution which allows transactions to be stored by all parties involved in a project and recorded permanently. This enables development partners to track funds throughout the lifecycle of a project, and to prepare comprehensive project execution reports, allowing for robust data analysis.
The platform has already been recognized internationally. In 2025, it received the Most Exciting Public Sector Innovation Project award from the International Association for Trusted Blockchain Applications and was featured in Citi’s Global Perspective and Solutions report for its role in modernizing financial systems and enabling new financial instruments.
FundsChain has been successfully tested in 13 projects across 10 countries, including Argentina, Bangladesh, Comoros Islands, Ethiopia, Kenya, Madagascar, Mauritius, Moldova, Mozambique, and the Philippines. It will now be scaled up and extended to approximately 250 projects in developing countries by the end of this fiscal year, in June 2026.
As FundsChain continues to expand across more projects and countries, it is important to ensure that development financing is fast and transparent, to deliver the best outcomes for people and the planet.
To learn more, email fundschainsupport@worldbank.org
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