Citi Joins BondbloX Bond Exchange as First Digital Custodian
Luisa Crawford Sep 15, 2023 10:26
Citi Securities Services has become the first digital custodian participant on the BondbloX Bond Exchange (BBX), the world's first fractional bond exchange. The partnership allows Citi clients to become BBX participants, facilitating the trading of both fractionalized and full-sized bonds. Citi will oversee settlement and custody services. The partnership aims to enhance digital financial market infrastructure, provide transparency, electronic operations, and universal accessibility in the bond market.
Citi Securities Services announced its pioneering role as the first digital custodian participant on the BondbloX Bond Exchange (BBX). BBX, which was introduced in 2020, is recognized as the world's inaugural fractional bond exchange utilizing advanced distributed ledger technology.
BBX's inception aimed to streamline bond investing, offering investors an electronic platform to monitor and transact bonds. This innovative approach has democratized bond trading by fractionalizing full-sized bonds, thus mirroring many equities trading advantages, such as enhanced bond exchange access and the recent inclusion of settlement and custodial services in the BBX market.
This collaboration permits eligible Citi clients to swiftly become BBX participants, facilitating the trading of both fractionalized and full-sized bonds. Citi will oversee the seamless settlement and custody services.
In 2021, BondbloX selected Citi to safeguard the bonds traded on its platform as fractionalized assets, termed "BondbloX." This deepened alliance presents Citi's clientele and other BBX participants with augmented opportunities. Besides availing digital custodian services, participants can diversify their investment portfolios with broader global bond market access and experience instantaneous settlement upon trade execution.
Dr. Rahul Banerjee, CEO and Co-Founder of BondbloX, remarked, "The decision to partner with Citi was an easy one, given their reputation as a leading securities services provider and our history of collaboration." He further emphasized the transformative potential of Digital Custody in the bond market, aiming for transparency, electronic operations, and universal accessibility.
Matthew Bax, Global Head of Custody for Citi Securities Services, expressed Citi's dedication to advancing digital financial market infrastructure (FMI) by crafting products and services that cater to their clients' evolving needs. Nadine Teychenne, Head of Digital Assets for Citi Securities Services, highlighted the scalability of their proprietary digital custody technology, which can integrate with emerging permissioned networks and offer a unified custody service.
Citi Securities Services, boasting approximately USD$27.8 trillion of assets under custody, administration, and trust globally, continues to pioneer digital asset solutions aligned with its strategic objectives. These innovations amplify Citi's diverse offerings, encompassing digital money, trade, securities, custody, asset servicing, and collateral mobility.
About Citi and BondbloX
A leading banking partner for institutions with cross-border requirements, Citi excels in wealth management and is a trusted personal bank in the US. Operating in nearly 160 countries, Citi offers a comprehensive suite of financial products and services.
Established in 2016, BondbloX comprises debt capital market bankers and technologists from Singapore, India, and Mexico, united by a vision to democratize bond access. Regulated by the Monetary Authority of Singapore, the BondbloX Bond Exchange stands as the world's premier fractional bond exchange.
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