Citi is teaming up with blockchain platform BondbloX to expand access to fractionalized bond trading. The partnership will allow Citi to offer digital custody services on BondbloX’s exchange.
BondbloX uses distributed ledger technology to split full-size bonds into smaller, more affordable pieces. This democratizes access to bonds by opening the market to more individual investors.
Citi will act as the first digital custodian on BondbloX’s network. The collaboration enables Citi clients to trade fractional or full bonds on the exchange with Citi providing settlement and custody.
According to Citi’s Global Head of Custody Matthew Bax, the move demonstrates Citi’s commitment to “investing in the future of digital financial market infrastructure.”
BondbloX CEO Dr. Rahul Banerjee said the partnership will showcase the benefits of transparent, accessible bond trading. BondbloX aims to revolutionize the traditional bond market.
Citi has been actively embracing digital asset advancements, citing the need to develop innovative products and services. This builds on Citi’s 2021 selection as BondbloX’s custodian for issued bonds.
The fractional bond trading capabilities arrive as Citi undergoes organizational changes, its largest reshuffle in 25 years. The bank is simplifying structures and cutting jobs to secure its future competitiveness.
#Citi #BondbloX #BondTrading #FractionalizedBonds #DigitalCustody
