infrastructure as a service

Why Bosonic?

We built the Bosonic Network to eliminate risk and open participation in Digital Asset markets for member institutions.

Why are existing exchanges, market-makers and brokerages better with Bosonic?

Institutions, especially fiduciaries, are principally concerned about risk to client assets. Therefore, they choose their counterparties carefully and will not accept counterparty credit and settlement risk. They are further mandated to seek best execution, which requires executing trades against many sources of liquidity with full transparency to both principal and agency trades.

CHALLENGES

No Self Custody

Institutions in regulated jurisdictions are mandated not to have custody or control of client assets other than directing trades against assets held by independent third-party custodial institutions, which are settled by the same. They can not hold client assets in wallets not protected by an independent custodial relationship.

No Retail Exchange Risk

Institutions are deeply concerned about hacking risk, flash crashes and other market manipulation, lack of transparency, and thin liquidity.  Only a handful of super sophisticated hedge funds are able to build liquidity aggregation solutions, and therefore, most find limited utility in trading on individual retail exchanges with unsophisticated order types and high market impact.

No Market-Maker Unsecured Credit

Institutions generally do not take direct credit risk to their trading counterparties, but instead use Tier-1 bank-provided Prime Brokerage or large Futures Commission Merchants (FCMs) for credit intermediation. Institutions cannot send assets to a market-maker or dealing desk and wait for them to settle by sending digital assets in return without a guarantor and risk-free settlement process.

No Asset Custody with Small Brokerages

Institutions generally will not hold assets with small start-up brokerage providers who may not be regulated as Broker-Dealers, FCMs or the equivalent. In the digital asset space, these upstart brokerage providers represent significant counterparty risk, whether they are acting as an agency broker or a principal to the trades. This is because they typically have custody or control over client assets and may move these assets to retail exchanges to access liquidity, take counterparty credit risk to market makers by trading on unsecured credit lines, and/or extend unsecured credit lines and leverage to other trading customers.

BETTER WITH BOSONIC

The only solution

Custodian Agnostic

Member institutions can face any other institution on the network without moving assets from their custodian by using cryptographically guaranteed trust, rather than requiring custody by exchanges and brokerages, eliminating the movements of assets.

Cross-Custodian Net Settlement

Allows for institutions to trade and make payments from their custodian with any other institutions at any other custodian with cross-margining and continuous netting with custodian-to-custodian atomic net settlement movements.

Atomic Exchange of Value

Tokenized assets on a patent-pending multi-ledger Layer 2 blockchain allow every transaction to be trusted and fully guaranteed with real-time clearing and settlement with finality. This eliminates trust and risk concerns and delivers Payment vs. Payment (PVP) transactions.

Prime Services and Institutional DeFi

Aggregation of third-party balance sheet facilitates almost unlimited scale for Prime Services and is delivered as a competitive lending marketplace without intermediation, rehypothecation risks, or movement of collateral.

Tradable Liquidity Aggregation

All liquidity from market-makers, institutional and retail exchanges, as well as other institutional clients are tradable from a single account at any custodian on the network with zero credit risk. Trades are continuously netted in real time with cross-margining for maximum capital efficiency and net settlement movements are fully automated at the custodial level for maximum automation and no “go first” risk.

Instant Cross-Custodian Payments

Institutions can make self-directed payments in any asset, including Fiat and Crypto, 24x7, with instant credit for trading and further payments.


See how custodians, exchanges, market makers and institutional trading firms benefit from the Bosonic Network™ Infrastructure-as-a-Service including:

2021 Roadmap: Institutional Adoption in Crypto Markets

LIQUIDITY
SECURE CUSTODY
CLEARING & SETTLEMENT

EDUCATIONAL BLOG SERIES

PART 1:  How to connect to liquidity to buy cryptoassets: “The Crypto Gateway”

PART 2:  Where and how to secure and store cryptoassets: Choosing the Right Crypto Wallet and Infrastructure

PART 3:  How to eliminate counterparty credit and settlement risk:  Clearing and Settlement

PART 4:  How to think ahead: Get Ready for a DeFi and Technologically Innovative Future