Israel’s Ministry of Finance and the Tel Aviv Stock Exchange (TASE) are preparing to issue a blockchain-based digital government bond.

The Israeli government and TASE are partnering with digital asset infrastructure companies Fireblocks and VMWare to conduct live testing of a new platform that uses smart contracts and tokenization to trade and clear digital bonds.

During the testing, units of the digital bond will be issued to the electronic wallets of the acquiring participants with payment in digital currency, which will be transferred to the Israeli government’s electronic wallet.

The goal of the government and TASE is to streamline processes, reduce costs and shorten the time for issuing and clearing government bonds.

“The current project begins a journey into this new world, allowing the creation of a first and important fulcrum that will serve as the basis for modernizing other traditional mechanisms going forward,” they said Wednesday.