Wednesday 12 August 2020

Northern Trust, BondEvalue complete world's first blockchain-based bond trade

KUALA LUMPUR, Aug 12 -- Northern Trust and BondEvalue have completed the first trade of a fractionalised blockchain-based bond known as BondbloX.

This follows the two parties having established a partnership last year, to deliver integrated asset servicing and digital solutions for fractional ownership of fixed income bonds operating from the Monetary Authority of Singapore’s Sandbox Express.

According to a statement, BondbloX was executed on BondEvalue’s platform with Northern Trust as the exclusive asset servicing provider.

Northern Trust is providing securities services for the wholesale bonds and will support receipt of investments and payments of redemptions for the platform in a wide array of currencies.

In what is believed to be a first for the industry, Northern Trust has built the market leading capability to communicate cash and securities settlement, reporting directly to BondEvalue’s distributed ledger technology (DLT) platform via an application programming interface.

“An additional benefit of fractionalised ownership of digital assets is the ability to open up institutional bond markets to more investor types – this is a positive step forward for broadening financial inclusion,” said Northern Trust global head of Market Advocacy & Innovation Research, Justin Chapman.

Meanwhile, BondEvalue founder, Rahul Banerjee said its platform was greatly assisted by Northern Trust, which not only brings the confidence of safe keeping and settlement, but advanced understanding of the transformative potential of DLT.

-- BERNAMA

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