Citigroup Becomes First Digital Custodian Participant of BondbloX Bond Exchange
Citigroup has announced that it is the first digital custodian participant of the BondbloX Bond Exchange (BBX), a unit of the global investment bank that aims to simplify bond investing. BBX is the world’s first fractional bond exchange, and this partnership will allow Citi’s clients who meet certain criteria to trade bonds on the exchange. Citi will provide settlement and custodial services for these clients.
Nadine Teychenne, head of digital assets for Citi Securities Services, stated that their proprietary digital custody technology is scalable and will facilitate settlement and custody services for clients investing in assets issued on permissioned blockchain networks and digital financial management information systems (FMIs).
This partnership builds on Citi’s previous role as a custodian for the underlying bonds issued and traded on BBX as fractionalized assets. Rahul Banerjee, CEO and co-founder of BondbloX, believes that digital custody is a significant step towards transforming the bond market, making it more transparent, electronic, and accessible to all.
Hot Take: Digital Custody Paves the Way for a Transparent and Accessible Bond Market
The collaboration between Citigroup and BondbloX represents a major milestone in the bond market’s evolution. By becoming the first digital custodian participant of BBX, Citigroup is driving innovation in bond investing by leveraging its scalable digital custody technology. This move not only simplifies bond trading but also enhances transparency, electronic accessibility, and inclusivity within the market.
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