Citi becomes first digital custodian for BondbloX, plans tokenized deposits using blockchain

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On September 15, the prominent American investment bank Citi Securities Services announced it had become the first digital custodian participant of the BondbloX Bond Exchange (BBX).

The Singaporean company BBX was launched in 2020 to simplify bond investing. It made bond trading more accessible by allowing investors to monitor and exchange bonds electronically. It also incorporated the benefits of equities trading, making trading bonds more convenient.

The partnership with Citi enables Citi’s clients and other BBX participants to have access to digital custodial services, wider access to the global bond market, and immediate atomic settlement at the point of trade execution. Eligible clients will also be able to participate in BBX and trade fractionalised and full-sized bonds.

BondbloX initially partnered with Citi back in 2021, where Citi acted as a digital custodian for full-sized bonds. Now, Citi has expanded its role to safeguard fractional bonds, opening up fresh possibilities and benefits for its clients and other participants in the BondbloX platform.

“The decision to partner with Citi was an easy one, given their reputation as a leading securities services provider and our history of collaboration,” said Rahul Banerjee, co-Founder and CEO of BondbloX. “This partnership will enable Citi’s clients and others to enjoy the full benefits of bond trading, coupled with Citi’s securities services support, almost immediately. 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.”