Citi Revolutionizes Bond Trading with Digital Custody on BondbloX Bond Exchange

Citi Securities Services has become the first digital custodian participant on the BondbloX Bond Exchange (BBX). Launched in 2020, BBX set out to simplify bond investing by leveraging distributed ledger technology. The platform has now taken a giant leap forward by introducing Citi’s digital custody services.

BBX’s novel approach to bond trading fractionalizes full-sized bonds, making them accessible to a wider range of investors and bringing the benefits of equities trading to the bond market. Citi’s partnership with BBX allows its eligible clients to join the exchange and start trading bonds almost immediately. Citi not only provides seamless settlement and custody services but also unlocks the global bond market, enabling greater diversification of investment portfolios and offering immediate, atomic settlement at the point of trade execution.

Dr. Rahul Banerjee, CEO, and Co-Founder of BondbloX, commented on this milestone partnership, emphasizing that “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.”

Matthew Bax, Global Head of Custody for Citi Securities Services, affirmed the bank’s commitment to the future of digital financial market infrastructure. He stated, “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’s proprietary digital custody technology is not only scalable but also flexible. It enables the bank to provide settlement and custody services for assets issued on permissioned blockchain networks and digital financial management information systems (FMIs). This technology ensures Citi’s adaptability to emerging permissioned networks while delivering a consolidated custody service through a unified operating model.

This collaboration underlines Citi’s relentless efforts to develop digital asset solutions, enhancing its product and service portfolio, including digital money, trade, securities, custody, asset servicing, and collateral mobility. As the financial landscape evolves, Citi remains at the forefront of innovation, ensuring its clients continue to receive cutting-edge solutions.

With Citi pioneering digital custody on BBX, the bond market is poised for a transformation, offering enhanced transparency, electronic trading, and accessibility to investors worldwide. The partnership marks a significant milestone in the evolution of bond trading, and the future holds even more promising developments in the world of fintech.