As the crypto market soared during the peak of the 2021 bull run, with Bitcoin edging towards its record-breaking $69,000 mark, an atmosphere of abundant liquidity and unrestrained enthusiasm prevailed. In the midst of all the excitement, a key factor driving the bullish narrative was the widely held belief that institutions were flocking to embrace crypto. This anticipation centered around institutional demand for Bitcoin and other digital assets.
The initial signs were there - MicroStrategy boldly led the charge, consistently accumulating BTC as a strategic treasury asset. Tesla, while not matching MicroStrategy's intensity, did venture into the space by holding BTC and briefly entertaining it as a payment option. However, the landscape shifted in 2022 with the collapse of FTX and other crypto entities, triggering a widespread market downturn. The once-promising prospect of institutional involvement began to waver, casting doubts on the industry's resilience.
As 2023 draws to a close, the crypto terrain has undergone a profound transformation: Sam Bankman-Fried, FTX's founder, now faces conviction on all counts related to the exchange's alleged criminal mismanagement. In contrast, Bitcoin's price has surged over 100% from its 2022 lows, injecting a renewed wave of optimism. With the upcoming halving on the horizon, a resounding claim echoes through the crypto landscape: institutions are making a comeback, and this time, there's a palpable conviction behind the sentiment.
However, a big obstacle persists for institutional participation in Crypto and Digital Assets—the absence of a Tier-1 bank prime broker, central clearing-house, or institutional consortium like DTCC or CLS Bank. This void leaves a crucial need for a comprehensive solution to eliminate the substantial risks associated with institutional involvement in the crypto space.
At Bosonic, we believe it's time for a fresh approach that kicks outdated TradFi and CeFi habits to the curb – no more central counterparties, massive balance sheets, or complicated papered legal agreements. Bosonic has spent years developing unique properties and specific technologies that simplifies the headache of clearing and settling trades without compromising the essential functionality provided by trusted legacy systems. The validation of the system’s capacity and resiliency has been confirmed with the execution of almost $10 billion over 2 million trades. This performance has exceeded the expectation of the soft launch.
The Bosonic ecosystem covers trading, lending and borrowing without any counterparty risk, making it the safest way to access the global digital assets market.
These are some of the solutions that Bosonic’s ecosystem provide:
Smart Vault is the world’s only non-custodial off-exchange settlement solution that eliminates huge risks and costs. It allows you to trade directly from your own wallet with Market Makers, CeFi or DeFi exchanges, eliminating the need for deposits at a physical custodian or exchange.
This is giving the opportunity to access global liquidity and interact with any counterparty without giving up control of your assets. Smart Vault users also benefit from the significantly lower cost compared to other options that passes the cost of the risk they take to the customers.
UNLIMITED is a tailored solution built specifically for Bitcoin Miners. It allows Miners unlimited access to our flagship offerings all for a low monthly rate. Unlimited allows you to have complete control over selling, lending and borrowing against your Bitcoin while making counterparty risk impossible.
Trade Desk seamlessly merges traditional trading technology and workflows with blockchain technology in a way that dramatically improves clearing and settlement while eliminating counterparty credit and settlement risk. Experience secure, direct market access combined with unparalleled capital efficiency and risk mitigation.
Repo bridges the gap between a well-established TradFi financing mechanism with modern DeFi needs by organizing an open competitive repo market for digital and fiat assets. Borrow and lend your assets with short-term collateralized loans with an unprecedented level of control, transparency and asset safety.
Borrow is a cash-out borrowing facility powered by Bosonic Repo where you can receive fiat or digital assets against your holdings in your own custody account. Borrow allows you to control the risk, duration, and interest rates on assets that you lend or borrow. It’s an excellent solution for institutions looking to access capital on their holdings while still capturing potential upside on assets.
The cryptocurrency and blockchain sector is in a state of constant expansion, navigating the currents of regulatory change. Institutional players, with their strategic foresight, are positioned to shape the future of Bitcoin, guiding its seamless integration into the broader financial ecosystem.
In this dynamic landscape, Bosonic emerges as the tailored solution that empowers institutions to embrace the crypto market securely.
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Bosonic, Inc., is the developer of innovative technology to facilitate the trading, clearance, and settlement of digital assets and digital asset securities with a focus on the elimination of counterparty credit and settlement risk without reliance on central counterparties or other balance sheet dependent credit intermediation. Please visit https://bosonic.digital.
Bosonic Securities, LLC, Member FINRA and SIPC.
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Bosonic Securities, LLC, CRD# 317012 is a technology-driven Broker Dealer and Alternative Trading System (ATS) that uses blockchain technology to promote market efficiency for digital asset securities. Bosonic Securities is a subsidiary of Bosonic, Inc.
Investing involves risks, including possible loss of principal. Investing in alternative investments is highly speculative, involves a high degree of risk and has the potential for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors.
Trading in cryptocurrencies comes with significant risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. Cryptocurrency trading can lead to large and immediate financial losses and is suitable only for investors who can bear such losses. There is no assurance that a business or person who accepts a cryptocurrency as payment today will continue to do so in the future.
Brokerage services and ATS are provided by Bosonic Securities, LLC, member FINRA, SIPC. Bosonic Network and related technologies and services are provided by Bosonic Inc. Bosonic Securities, LLC is a fully owned subsidiary of Bosonic, Inc. SIPC coverage is in relation to brokerage products and services and does not apply to crypto asset products or services.
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