Citi becomes the first digital custodian of BondbloX blockchain bond exchange

Citi will make bond trading more accessible to a wider investor base

Citi Securities Services recently reached a groundbreaking milestone by becoming the first digital custody participant on the BondbloX bond trading network.

The partnership, announced via a press statement on September 14, will allow Citi to make bond trading more accessible to a wider investor base.

Citi’s love affair with Bondblox

Launched in 2020, the Bondblox Bond Exchange is a platform leveraging distributed ledger technology to democratize bond trading by disaggregating full-scale bonds to enable bond investing.

The relationship between Bondblox Exchange and Citi began in 2021, when Citi was selected as the custodian for bonds issued and traded through the former exchange.

The expanded relationship will bring numerous benefits to Citi’s clients and other BBX participants, including access to digital custody services, broader access to global bond markets and instant atomic settlement upon trade execution.

BBX’s partnership with Citi will allow eligible clients to trade partial and full bonds on BBX, with Citi providing comprehensive settlement and custody services.

Matthew Bax, global head of custody for Citi Securities Services, said of the partnership:

“Today’s announcement demonstrates our commitment to investing in the future of digital financial market infrastructure (FMI) by building products and services to support our customers’ current and future needs… We are committed to partnering with BondbloX as they embark on a journey to transform and simplify bonds The journey of trading and investing.”

Dr. Rahul Banerjee, co-founder and CEO of BondbloX, commented on the partnership, highlighting how digital custody will help revolutionize the bond market by adding a layer of transparency and accessibility. Dr. Banerjee mentioned that BondbloX’s partnership with Citi will enable Citi’s clients to see the benefits of trading bonds.

Citi looks to the future

Citi reiterates its commitment to the future of digital financial market infrastructure (FMI) through the development of innovative products and services. Matthew Bax, Global Head of Custody at Citi Securities Services, highlighted the firm’s partnership with BondbloX, which aims to revolutionize bond trading and investing.

With approximately $27.8 trillion in assets under custody, management and custody globally and a leading proprietary network spanning more than 60 markets, Citi Securities Services remains committed to providing cross-border support.

Perhaps to secure its future, Citigroup is making some internal management and structural changes – its biggest in the past 25 years. The restructuring will reportedly result in job cuts as the bank seeks to simplify its organization.