Citi is the first digital custodian to join BondbloX.
As the first digital custodian participant on the BondbloX Bond Exchange (BBX), Citi Securities Services has highlighted its innovative participation. As the first fractional bond exchange in the world to use cutting-edge distributed ledger technology, BBX was unveiled in 2020.
When BBX was established, the goal was to simplify the process of buying and selling bonds by providing investors with a digital platform. By fractionalizing full-sized bonds, this ground-breaking strategy has made bond trading accessible to all investors. As a result, it has many advantages over stock trading, including improved access to bond exchanges and the recent addition of settlement and custodial services to the BBX market.
Through this partnership, qualifying Citi clients can quickly join BBX, enabling the trading of both fractionalized and full-sized bonds. The seamless custody and settlement services will be under Citi’s supervision.
BondbloX chose Citi in 2021 to protect the fractionalized assets, or bonds, exchanged on its platform under the name “BondbloX.” This strengthened partnership offers Citi’s clients and other BBX participants more chances. Along with using digital custodian services, participants can access a wider range of global bond markets, diversify their investment portfolios, and experience immediate settlement after executing trades.
CEO and Co-Founder of BondbloX Dr. Rahul Banerjee said, “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 went on to emphasise the bond market’s potential for transformation through the use of digital custody, which aims for accessibility, electronic operations, and transparency.
By developing goods and services that meet the changing demands of its customers, Matthew Bax, Global Head of Custody for Citi Securities Services, demonstrated Citi’s commitment to enhancing digital financial market infrastructure (FMI). The scalability of Citi Securities Services’ proprietary digital custody system, which can interface with new permissioned networks and provide a uniform custody solution, was emphasised by Nadine Teychenne, Head of Digital Assets.
With roughly USD$27.8 trillion in assets under custody, administration, and trust internationally, Citi Securities Services continues to lead the way in developing digital asset solutions that are consistent with its strategic goals.
With regard to digital currency, trade, securities, custody, asset servicing, and collateral mobility, these innovations expand Citi’s wide range of offerings.