Yesterday, U.S.-based asset management firm
Northern Trust partnered with blockchain firm BondEvalue to deliver asset servicing and digital solutions for the latter’s bond trading platform. BondEvalue launched BondBlox, representing $1,000 in fractional ownership of a conventional bond.
The Singapore-based startup was recently approved to enter the Monetary Authority of Singapore’s (MAS)
Sandbox Express to launch the blockchain bond exchange. The goal is to reduce the minimum investment amount of bonds and open up the market to more investors, making bond trading as easy as equities.
Another aspect of the platform is reducing settlement time. Most bonds trade over the counter, i.e. through securities firms and brokers, instead of an exchange. This makes the bond prices opaque and the process inefficient. By moving bond trading onto a blockchain, investors get a better view of the bond prices and can enable instant settlement electronically.
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