Global custodian Citi Securities Service has announced its membership in BondbloX Bond Exchange (BBX), a DLT-based platform that claims to be the world’s first fractional bond exchange.
Citi is the first digital custodian to join the exchange, which launched in 2020 under the name Bondevalue. The concept of fractional shares utilizes blockchain technology to divide assets or securities into smaller units that can be held on a blockchain register. This approach aims to make illiquid real assets, such as real estate or fine art, more accessible to a wider range of investors.
BBX’s exchange is designed to bring many of the benefits of equity trading to the fixed income space, enhancing accessibility and trading options. With Citi’s arrival, the platform will now incorporate a settlement and custody function.
“Digital custody is the next big step in the transformation of the bond market, making bond markets more transparent, electronic, and accessible to all,” said Rahul Banerjee, CEO and co-founder of BBX.