Citi Securities Services Provides Digital Custody for Bonds on BBX Exchange
Citi Securities Services, a management hub offering securities solutions, has partnered with the BondbloX Bond Exchange (BBX) to provide digital custody for bonds traded on the exchange. BBX is a fractional bond exchange regulated by the Monetary Authority of Singapore. Through this partnership, Citi clients that meet certain criteria will be able to trade fractionalized and full-sized digitized bonds on BBX. The New York-based bank did not disclose the specific criteria for accessing the exchange.
“This proprietary digital custody technology is scalable and will allow us to provide settlement and custody services for clients investing in assets issued on permissioned blockchain networks and digital financial market infrastructures.”
Matthew Bax, Global Head of Custody for Citi Securities Services
BBX, founded in 2016, settles trades with bonds on its blockchain network. Custodians run nodes on this network to achieve consensus and share data. Citi’s move into digital custody for blockchain-based bonds comes after the bank presented an optimistic outlook on the evolution of digital assets and distributed ledger technology (DLT) in August 2023.
Hot Take: Citi Enhances Digital Custody Services with BBX Partnership
Citi Securities Services’ collaboration with the BondbloX Bond Exchange (BBX) represents a significant step forward in enhancing their digital custody services. By providing custody for bonds traded on BBX, Citi is expanding its offerings in the blockchain-based asset space. This move aligns with Citi’s optimistic outlook on the future of digital assets and DLT. With their scalable proprietary digital custody technology, Citi can now offer settlement and custody services for assets issued on permissioned blockchain networks and digital financial market infrastructures. This partnership showcases Citi’s commitment to staying at the forefront of innovation in the financial services industry.
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