Citi Securities Services announced that it has become the first digital custodian participant of BondbloX Bond Exchange (BBX), the fractional bond exchange using the latest in distributed ledger technology.
BBX was launched in 2020 to simplify bond investing by “allowing investors to track and trade bonds electronically.”
The launch was seen as “a significant leap forward in revolutionizing bond trading, making it more accessible to a broader range of investors by fractionalizing full-sized bonds and bringing many of the benefits of equities trading to the bond market, in terms of improved access to the exchange trading of bonds and now the provision of settlement and custodial services in the BBX market.”
The partnership with Citi allows Citi’s clients “that meet certain criteria, to become BBX participants and begin trading bonds (both fractionalized and full-sized) almost immediately, with Citi providing seamless settlement and custody services at the back end.”
Citi was initially chosen by BondbloX in 2021 “to act as custodian for the underlying bonds issued and traded on its exchange as fractionalized assets (called ‘BondbloX’).”
The recent extended relationship “unlocks additional opportunities and benefits for Citi’s clients as well as other BBX participants.” In addition to benefiting from the services of a digital custodian, participants “gain wider access to the global bond market enabling greater diversification of their investment portfolios, and immediate, atomic settlement at the point of trade execution.”
Dr. Rahul Banerjee, CEO and Co-Founder of BondbloX, said:
“This partnership will enable Citi’s clients and others to enjoy the full benefits of bond trading, coupled with Citi’s securities services support, almost immediately.”
Nadine Teychenne, Head of Digital Assets for Citi Securities Services. said:
“To develop this service, we leveraged our expertise in exchange-traded settlement and custody services which we provide today in around 70 FMIs globally.”
With approximately USD$27.8 trillion1 of assets under custody, administration and trust worldwide, and a proprietary network spanning more than 60 markets, Citi Securities Services provides cross-border support “for clients with extensive on-the-ground local market expertise, innovative post-trade technologies, customized data solutions, and a wide range of securities services solutions that can be tailored to meet clients’ needs.”
Citi continues to develop digital asset solutions, “in line with its goals and risk appetite, using a unified set of shared technology capabilities and a common strategic approach.”
These innovative solutions enhance Citi’s products and services “including digital money, trade, securities, custody, asset servicing and collateral mobility.”
