Broker dealers looking to offer digital asset trading to their clients have faced some challenges. Crypto markets are volatile, fragmented and risky, in part because you need to deal with multiple market makers and exchanges, each with their own liquidity, fees and settlement processes. You need to have a balance sheet to cover the credit risk of trading with them. You also need to handle the custody and security of digital assets, which exposes you to hacking and theft. On top of all that, you need to comply with the regulatory requirements of different jurisdictions, which can be complex and costly.
The ‘holy grail’ for broker dealers would overcome all these challenges and provide a seamless, secure and compliant digital asset trading service for their clients. What if you could access the best liquidity in the market, without any credit or settlement risk, without any balance sheet requirement, without any custody or handling of digital assets, and without any regulatory overhead?
That's where Bosonic comes in. Bosonic is a financial ecosystem that covers trading, lending and borrowing of digital and tokenized assets, and that removes all the traditional risks and inefficiencies of the crypto space. Bosonic leverages blockchain technology, smart contracts and decentralized protocols to create a trustless, transparent and scalable platform for institutional and retail investors.
Here are some of the key benefits of using Bosonic as a broker dealer:
Complete brokerage technology solution, fully hosted: You don't need to invest in any infrastructure or software development. You can use Bosonic's white label trading platform, or integrate your own proprietary platform with Bosonic's APIs.
Aggregation of any market maker and exchange liquidity for deepest tightest core liquidity: You can access the best prices and execution in the market, from a single point of entry. You can also manage your users, liquidity, commissions and spreads with real-time monitoring and reporting tools.
A Sponsored Access model that allows you to go live quickly with no regulatory overhead: You don't need to obtain any licenses or registrations to offer digital asset trading to your clients. You can leverage Bosonic's ecosystem partners, who are regulated entities that provide custody, AML/KYC and compliance services. Your clients will have their own segregated accounts at the custodian, where they can deposit and withdraw fiat and crypto funds.
No balance sheet commitment or risk to brokerage: You don't need to have any capital or collateral to trade with Bosonic's liquidity providers. You don't have any bilateral credit or settlement risk with them either. All trades are settled instantly on Bosonic's Layer-2 blockchain, which is backed by third-party regulated custodians.
No bilateral credit or settlement with market makers, no assets or onboarding at exchanges: You don't need to open accounts or establish relationships with multiple market makers and exchanges. You don't need to transfer any assets or funds between them. You can trade from your custodial account with zero credit or settlement risk to you or your clients.
Third-party regulated custody for segregated client accounts held direct at the custodian: You don't need to handle the custody or security of digital assets. Your clients' funds are stored safely at a reputable custodian, who is responsible for the AML/KYC and compliance processes. Your clients can also benefit from Bosonic's lending and borrowing services, which allow them to earn interest on their idle assets or borrow against their collateral.
Industry standard FIX APIs as well as REST/Websocket APIs: You can easily integrate your existing systems and workflows with Bosonic's platform. You can also leverage Bosonic's advanced features such as algorithmic trading, smart order routing, margin trading and cross-collateralization.
As you can see, Bosonic is the ultimate solution for broker dealers who want to offer digital asset trading to their clients, without any of the hassles or risks of the traditional crypto space. With Bosonic, you can focus on growing your business and providing value-added services to your clients, while Bosonic takes care of everything else.
If you are interested in learning more about Bosonic and how it can help you as a broker dealer, schedule a demo today! We would love to hear from you and answer any questions you might have.
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