Citi Securities Services has become the first digital custodian participant of BondbloX Bond Exchange (BBX), the world’s first fractional bond exchange using distributed ledger technology.
The partnership aims to allow certain Citi clients to become BBX participants and begin trading both fractionalised and full-sized bonds almost immediately, with Citi providing back-end settlement and custody services.
BBX says participants will gain wider access to the global bond market, enabling diversification of their investment portfolios and atomic settlement at the point of trade execution.
Nadine Teychenne, head of digital assets for Citi Securities Services, says: “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 FMIs.
“It enables Citi to connect to newly permissioned networks as they emerge and provide a fully consolidated custody service through a single operating model.”
