The world’s first fractional bond exchange using the latest in distributed ledger technology now has Citi Securities Services as its first digital custodian participant.
BondbloX Bond Exchange, or BBX, launched in 2020 and allows investors to track and trade bonds electronically. It has been hailed as a significant step in a bond trading revolution. By enabling investors to trade in fractions of full-sized bonds, it is also seen as bringing many of the benefits of the equities market to bonds.
Citi clients, subject to certain criteria, will be able to begin trading both fractionalized and full-sized bonds on the BBX almost immediately, with Citi providing seamless settlement and custody services at the back end.
“Today’s announcement demonstrates our commitment to investing in the future of digital financial market infrastructure by building products and services to support the current and future needs of our clients,” said Matthew Bax, global head of Custody for Citi Securities Services. “We are committed to partnering with BondbloX on their journey to transform and simplify bond trading and investing.”
BBX participants, whether they are Citi clients or not, will benefit from Citi’s digital custodian services and will gain wider access to the global bond market enabling greater diversification of their investment portfolios, and immediate, atomic settlement at the point of trade execution.
“The decision to partner with Citi was an easy one, given their reputation as a leading securities services provider and our history of collaboration,” commented Dr. Rahul Banerjee, CEO and Co-Founder of BondbloX. “Digital Custody is the next big step in the transformation of the bond market, making bond markets, more transparent, electronic and accessible to all. Now, bonds are more easily accessible to everyone.”
Citi has been involved with BondbloX since 2021 when it was selected to act as custodian for the underlying bonds issued and traded on its exchange as fractionalized assets (which are called BondbloX).
“This proprietary digital custody technology is scalable and will allow us to provide settlement and custody services for clients investing in assets issued on permissioned blockchain networks and digital FMIs. It enables Citi to connect to newly permissioned networks as they emerge and provide a fully consolidated custody service through a single operating model,” said Nadine Teychenne, Head of Digital Assets for Citi Securities Services. “To develop this service, we leveraged our expertise in exchange-traded settlement and custody services which we provide today in around 70 FMIs globally.”
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
