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BBX, globally recognized as the first fractional bond exchange since its launch in 2020, simplifies bond investing by allowing investors to track and trade bonds electronically. The platform has brought several advantages of equities trading to the bond market by fractionalizing full-sized bonds, offering settlement and custodial services, and making this form of investment more accessible to a wider range of investors.
The extended partnership with Citigroup allows clients who meet certain criteria to become BBX participants and begin trading bonds instantly. As part of the collaboration, Citigroup will leverage its proprietary digital custody technology to provide seamless settlement and custody services using distributed ledger technology.
This move marks a significant step in transforming the bond market into a more transparent, electronic, and accessible platform for all investors. It also offers Citigroup’s clients and other BBX participants broader access to the global bond market, facilitating greater investment portfolio diversification and immediate settlement at the point of trade execution.
In 2021, Citigroup was selected as the custodian for bonds issued and traded on the BBX exchange as fractionalized assets. The expanded relationship now promises additional benefits for Citi’s clients and other BBX participants.
Nadine Teychenne, who leads digital assets for Citi Securities Services, stated that their proprietary digital custody technology is scalable. It will enable Citigroup to provide settlement and custody services for clients investing in assets issued on permissioned blockchain networks and digital FMIs. This technology also allows Citigroup to connect to emerging permissioned networks and provide a fully consolidated custody service through a single operating model.
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