CrossTower and Bosonic eliminate need for customers to custody assets with exchanges
Clients on the Bosonic Network can now trade on CrossTower while leaving their assets with their preferred custodian
NEW YORK, Dec. 14, 2020 — CrossTower Inc., a digital asset exchange operator founded by capital markets veterans on a mission to mainstream digital asset investing and trading, today announced it has partnered with crypto-focused prime brokerage network Bosonic enabling all customers on the Bosonic Network to trade on CrossTower liquidity without the need to custody assets at the exchange. The partnership eliminates one of the main barriers to widespread institutional trading, breaking down the silos between customers on the Bosonic Network and CrossTower.
The requirement to have assets custodied on multiple siloed exchanges has led to unacceptable and unnecessary levels of counterparty and settlement risk, massive capital inefficiency, and the potential for information leakage. To address these issues, Bosonic created the Bosonic Network – a custodian-agnostic network built on a Layer 2 blockchain that delivers the first cross-custodian solution and opens-up Prime Brokerage capabilities to all custodians on the network and their clients. Trades are performed as an atomic exchange with real-time clearing and settlement against provable assets at the custodian account level. This represents the first real alternative to credit intermediation – the key function of a traditional Prime Broker – replacing big bank balance sheets with technology. Automated net settlement, both intra-custodian and cross-custodian, make it possible to trade with any counterparty dealer, exchange or other firm from a single account at any connected custodian with zero risk.
CrossTower co-founder and Chief Executive Officer Kapil Rathi said: “The Bosonic network is a cornerstone of services we’re rolling out to bring institutions the liquidity they are looking for while minimizing counterparty and settlement risk. We chose the Bosonic network because it enables exchanges to deliver liquidity to the maximum number of institutional clients including traditional fiduciaries.”
Rosario Ingargiola, CEO and Founder of Bosonic said: “Our careful search for high-caliber trading partners led us to CrossTower because they’ve built an institutional-grade venue with liquidity the clients on our network want to access. This relationship provides clients with a seamless onramp to CrossTower, enabling them to trade on CrossTower liquidity while keeping their assets in their own account at the custodian of their choosing.”
CrossTower is an exchange operator founded by capital markets veterans on a mission to mainstream digital asset trading and investing. We have built a multi-asset platform for institutional and individual investors with best-in-class safeguards, services and capabilities to make the next-generation financial markets a reality. CrossTower has methodically built its platform, leveraging its trading experience, technology, operational infrastructure, innovative pricing as well as regulatory and client service models, to ensure the success of the exchange at launch and well into the future. For more information, visit www.crosstower.com.
Bosonic is the leading Prime Brokerage infrastructure provider. The Bosonic Network is the only multi-custodian Layer 2 blockchain network that delivers a real alternative to credit intermediation. Institutional trading firms can face each other over the Bosonic Network to eliminate counterparty credit and settlement risk while drastically increasing capital efficiencies and lowering operational risk and network costs. For more information, visit bosonic.digital
CrossTower Inc. provides this content for general information purposes, to better inform you on your digital asset investment journey. We do not provide investment recommendations or provide tax advice. Please consult your investment professional or tax advisor if you require assistance in these areas.