Prime Solutions for Digital Asset Challenges

Navigating the complexities of digital asset services made simple with Bosonic's seamless prime brokerage platform.

Hand BTC
December 12, 2023

Digital assets, such as cryptocurrencies, tokens, stablecoins, and tokenized real-world assets are becoming increasingly popular and valuable in the global financial market. However, they also pose significant challenges for traditional financial institutions, such as banks, brokers, and custodians, who want to offer prime services to their clients in this emerging asset class.

One of the main challenges is how to manage the custody and settlement of digital assets securely and efficiently, without exposing the institution or its clients to counterparty credit or settlement risk. Another challenge is how to provide access to liquidity and trading services across multiple venues and market makers, without requiring the institution or its clients to hold or transfer assets on multiple platforms or exchanges.

In this blog post, we will introduce Bosonic—a complete solution for running a digital assets prime brokerage operation that works with any custodial wallet and general ledger technology or sub-custodian solution.

Bosonic is an enterprise-ready fully hosted solution with security that complies with requirements for nationally chartered banks. You don't have to worry about the technical or regulatory challenges of handling digital assets, as Bosonic takes care of everything for you. You can use any wallet technology for custody of digital assets and any general accounting ledger solution for fiat. You can also use a sub-custodian to avoid holding or handling digital assets yourself.

Bosonic also offers asset tokenization tools to easily make client collateral held in custody available for trading and payments. You can trade any digital asset over a variety of platforms, such as CLOB, Dark Pool, Liquidity Aggregation w/SOR and RFQ block trading platform. You can access aggregated liquidity from any market makers and exchanges, all tradable without bilateral credit and bilateral settlement or assets at exchanges. You can execute trades as an atomic exchange with real-time clearing and settlement against client collateral on layer-2 blockchain ledgers. This eliminates counterparty credit or settlement risk for you and your clients across all liquidity providers and other counterparties.

Bosonic also has a lending marketplace with repo lending/borrowing for short borrowing, margin or leverage financing with aggregated third-party party balance sheets held by lenders in their own custodial accounts. You can lend or borrow digital assets at competitive rates and terms, with real-time pre-trade risk, margining, mark-to-market and auto-liquidation. You can also use the credit engine to support prime broker granted credit as well as bilateral credit lines and enforce limits.

The Bosonic platform allows instant and round-the-clock payments on layer-2 blockchain networks for various purposes. You can send and receive digital assets instantly and securely, with low fees and high scalability. You can also use the client onboarding tools with user creation and management to easily set up and manage your clients' accounts. If that’s not enough, it also provides an API for building custom applications that can manage collateral efficiently and securely.

Bosonic provides a full suite of real-time activity monitoring dashboards and historical reporting. You can track and analyze your trading, lending and borrowing activities, as well as your clients' performance and risk exposure. You can also use the APIs to integrate with your existing systems and workflows, such as industry standard FIX protocol for makers and takers as well as outbound/inbound post trade drop copies and REST/Websockets.

As you can see, Bosonic is a great solution for prime brokers who want to offer their clients a comprehensive and seamless experience in the digital assets space. Bosonic is not only secure, reliable and scalable, but also innovative, flexible and user-friendly. If you are interested in learning more about Bosonic, schedule a demo today!

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