Today Citi Securities Services announced it will provide digital custody services for the BondbloX Bond Exchange (BBX). The Singapore-regulated exchange uses DLT to offer fractional bonds. BondbloX enables accredited and professional investors to buy as little as $1,000 in digital bonds. It does so by holding full sized bonds usually offered in denominations of more than $200,000.
At first we were confused because Citi announced it would be a BondbloX custodian in 2021. However, that was for the underlying full denomination bonds. Now it will custody the fractional version – the digital bonds.
That’s an important step because many institutional investors avoid solutions that don’t fit in with their existing custody infrastructures. Citi can potentially make using BondbloX seamless, substantially expanding the potential investor base. Apart from fractionalization, the BondBlox solution also enables atomic settlement.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
