Citi has revealed that it has become the first digital custodian participant of BondbloX Bond Exchange (BBX).
BBX is the world’s first fractional bond exchange using the latest in distributed ledger technology.
The partnership will allow Citi clients that meet a certain criteria, to become BBX participants and begin trading bonds (both fractionalised and full-sized) almost immediately.
Dr. Rahul Banerjee, CEO and Co-Founder of BondbloX, 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.
“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. Digital Custody is the next big step in the transformation of the bond market, making bond markets, more transparent, electronic and accessible to all. Now, bonds are more easily accessible to everyone.”
The announcement of this 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.
Matthew Bax, Global Head of Custody for Citi Securities Services, said: “Today’s announcement demonstrates our commitment to investing in the future of digital financial market infrastructure (FMI) by building products and services to support the current and future needs of our clients.
“We are committed to partnering with BondbloX on their journey to transform and simplify bond trading and investing.”
Citi will continue to develop digital asset solutions, in line with its ambitons, 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.
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