If you are a lending desk looking for a way to participate in the fast-growing digital and tokenized asset market, you might be frustrated by the lack of efficient and secure solutions. Traditional lending platforms often require you to move your assets to a third-party custodian, exposing you to counterparty risk, operational delays and high fees. Moreover, you have little control over the terms and conditions of the loans, such as interest rates, margin levels and liquidation triggers.
That's why Bosonic is a game-changer for lending desks. Bosonic is a financial ecosystem that covers trading, lending and borrowing and that removes the risks and inefficiencies common in traditional systems. With Bosonic, you can access a real-time lending marketplace for intra-day margin and credit financing while maintaining your assets in your own custodial account. You can also set your own interest rates, term and margin levels, and choose between disclosed and anonymous transacting.
How does Bosonic work? Bosonic leverages the power of blockchain technology to create a Layer-2 solution that connects custodians, exchanges and liquidity providers. Bosonic uses smart contracts to execute transactions on the blockchain, ensuring transparency, security and speed. Bosonic also uses a novel mechanism called Repo (repurchase agreement) to transfer ownership of the underlying assets in real-time, without moving them from the custodial accounts. This way, lenders can perfect their ownership of the collateral in the event of default, while borrowers can access liquidity without losing custody of their assets.
What are the benefits of Bosonic for lending desks? Here are some of the key points:
Real-time borrowing and lending order book: You can view and execute orders on a live marketplace that matches borrowers and lenders based on their preferences and availability.
Borrowers and lenders keep assets in their own account at their own custodians: You don't have to trust or rely on a third-party intermediary to hold your assets. You can use your existing custodial relationships or choose from a network of reputable custodians integrated with Bosonic.
Lenders control interest rates, initial, variation and liquidation margin levels: You can set your own parameters for each loan, depending on the risk-reward profile you are comfortable with. You can also monitor the performance of the loans and adjust the margin levels accordingly.
Disclosed and anonymous transacting: You can choose whether to reveal your identity or remain anonymous when placing or accepting orders. You can also filter orders based on the counterparty's reputation, rating or KYC status.
Real-time margining, mark-to-market and auto-liquidation of borrower positions and Reverse Repo: You can benefit from a robust risk management system that tracks the value of the collateral and the borrower's positions in real-time. If the collateral value falls below a certain threshold, Bosonic will automatically liquidate the borrower's positions and return the assets to the lender. Alternatively, if the borrower wants to exit the loan before maturity, they can use a Reverse Repo mechanism to buy back the collateral from the lender.
Interest rate payments automatically received in lender custodial accounts: You don't have to worry about collecting or sending interest payments. Bosonic will automatically transfer them to your custodial account at the end of each day or at maturity.
Asset holders can earn yield on Crypto and Fiat in a safer institutional marketplace: You can diversify your portfolio and generate income by lending your crypto or fiat assets to borrowers who need them for trading or other purposes. You can also access a variety of assets, including Bitcoin, Ethereum, USDC, USDT and more.
No asset movements means no issues with compelling the return of digital assets: You don't have to deal with the hassle or risk of moving your assets across different platforms or wallets. You can keep them in your own account at all times and still lend them out.
As you can see, Bosonic is a great solution for lending desks who want to tap into the digital asset market without compromising on efficiency, security or flexibility. If you are interested in learning more about Bosonic, schedule a demo today!
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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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