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Citi Inaugural Digital Custodian to Join BondbloX Bond Exchange

Citi Securities Services becomes the first digital custodian on the BondbloX Bond Exchange (BBX), aiming to revolutionize bond trading through fractionalization and advanced distributed ledger technology.

Key Points

  • Citi Securities Services becomes the first digital custodian on BondbloX Bond Exchange (BBX), utilizing distributed ledger technology.
  • The partnership aims to streamline bond investing and democratize bond trading through fractionalization.
  • Citi clients can now trade fractionalized and full-sized bonds on BBX with seamless settlement and custody services provided by Citi.
  • The collaboration enhances transparency and accessibility in the bond market while advancing digital financial market infrastructure.

Citi Securities Services has made history by becoming the first digital custodian participant on the BondbloX Bond Exchange (BBX), an innovative platform that utilizes advanced distributed ledger technology.

Citi’s collaboration with BBX aims to streamline bond investing and democratize bond trading by fractionalizing full-sized bonds.

About BondbloX Bond Exchange

The BondbloX Bond Exchange, introduced in 2020, offers investors an electronic platform to monitor and transact bonds.

By fractionalizing bonds, BBX mirrors the advantages of equities trading, providing enhanced bond exchange access and settlement and custodial services.

This partnership enables eligible Citi clients to quickly become BBX participants, allowing them to trade both fractionalized and full-sized bonds. Citi will oversee the seamless settlement and custody services for these transactions.

In 2021, BondbloX selected Citi to safeguard the bonds traded on its platform as fractionalized assets called “BondbloX.”

This deepened alliance provides Citi’s clientele and other BBX participants with increased opportunities.

In addition to digital custodian services, participants can now diversify their investment portfolios with global bond market access and experience instant settlement upon trade execution.

Dr. Rahul Banerjee, CEO and Co-Founder of BondbloX, expressed the ease of partnering with Citi due to their renowned reputation as a leading securities services provider and their history of collaboration.

He emphasized the transformative potential of Digital Custody in the bond market, promoting transparency, electronic operations, and universal accessibility.

Matthew Bax, Global Head of Custody for Citi Securities Services, stated that Citi is committed to advancing digital financial market infrastructure (FMI) by creating 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, with approximately USD$27.8 trillion of assets under custody, administration, and trust globally, continues to lead the way in digital asset solutions aligned with their strategic objectives.

Their diverse offerings encompass digital money, trade, securities, custody, asset servicing, and collateral mobility.

About Citi and BondbloX

Citi is a leading banking partner for institutions with cross-border requirements, excelling 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 is comprised of debt capital market bankers and technologists from Singapore, India, and Mexico.

Their vision is to democratize bond access. Regulated by the Monetary Authority of Singapore, the BondbloX Bond Exchange is the world’s premier fractional bond exchange.