American asset manager Northern Trust has struck a partnership to offer asset servicing and digital solutions to the blockchain-powered bond trading platform of Singaporean fintech firm BondEvalue.
BondEvalue recently secured the approval to enter the Sandbox Express of the Monetary Authority of Singapore. The approval allows the firm to test the feasibility of a new bond exchange that will be powered by blockchain technology.
The aim is to ease wholesale bond trading and expand its reach by lowering the minimum investment amount to $1,000 through BondbloX.
Through the exchange, the fintech firm intends to support instant trade settlement and make bond trading transparent.
BondEvalue founder Rahul Banerjee said: “We are excited to work with Northern Trust in making bond markets more efficient and transparent for bond investors, via our fractional bond exchange.
“It is important for us to have a partner who recognises the potential of DLT and is nimble in their technological adoption.”
Northern Trust is already an active player in the blockchain space.
In 2017, the firm partnered with IBM to develop a blockchain solution for the private equity market.
Last year, the asset manager collaborated with PwC to enable audit firms to gain quick access to private equity fund data on its blockchain platform.
However, earlier this year, Northern Trust’s blockchain-based private equity asset servicing platform was acquired by Broadridge Financial Solutions.
Commenting on the latest alliance, Northern Trust global head of Market Advocacy & Innovation Research Justin Chapman said: “Our partnership with BondEvalue has the potential to allow a wider group of investors access to investments which were historically only available to larger institutions.
“It enables us to continue to lead and develop future market solutions supported by our focus on digitisation and blockchain technology innovation.”