Investment Operations

BondEvalue, Northern Trust Perform and Settle World’s First Blockchain-based Bond Trade

Digital Asset Custody and Servicing

Northern Trust (NTRS) and BondEvalue have confirmed the completion of the first trade of a fractionalized blockchain-based bond.

According to a joing statement, the trade of a blockchain-based bond, known as BondbloX, was executed on BondEvalue’s platform with Northern Trust as the exclusive asset servicing provider. This comes after the two parties established a strategic partnership in November 2019 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.

“Singapore continues to be a significant market for deploying DLT in the financial services system.

BondEvalue said its platform combines the power of distributed ledger technology (DLT) to enable enhanced transparency, liquidity and faster settlement. “This milestone represents a significant step towards making institutional-grade bonds more widely accessible to certain investors,” said Rahul Banerjee, founder, BondEvalue. “Our platform is greatly assisted”by Northern Trust, who not only brings the confidence of safekeeping and settlement, but advanced understanding of the transformative potential of DLT,” Banerjee added.

“Singapore continues to be a significant market for deploying DLT in the financial services system,” said Yen Leng Ong, country executive for Southeast Asia at Northern Trust. “The fintech regulatory sandbox environment has enabled Northern Trust to work collaboratively with BondEvalue to the benefit of investors and the wider capital markets ecosystem,” she added.

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 & securities settlement reporting directly to BondEvalue’s DLT platform via an application programming interface (API).