Eliminating counterparty credit & settlement risk w/ custodian and liquidity agnostic infrastructure for institutions & fiduciaries trading Digital Assets.
SF, NYC, London, Singapore
Joined June 2016
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Bosonic Securities, LLC, was recently approved by the Financial Industry Regulatory Authority (FINRA) to operate a broker-dealer and an Alternative Trading System (ATS) for equity and debt securities, including digital asset securities.
businesswire.com/news/home/2…
Crypto lender BlockFills files for Chapter 11 bankruptcy after weeks of turmoil theblock.co/post/393644/bloc…
BlockFills files Chapter 11 with as little as $50M in assets and as much as $500M in liabilities....ouch. Truly sorry for those hit by the fallout.
Key takeaways:
Rule # 1: Don't hold your assets (or worse, the fund or client assets you are a fiduciary for) at a crypto "Prime Broker" keep them in your own account and control at a Qualified Custodian or in self-custody
Rule # 2: See Rule # 1 especially if the "Prime Broker" is providing leverage, running borrow/lend books, taking risk as a trading counterparty, not leveraging a solution that let's them control their client collateral at all times and avoiding bilateral-settlement with "who-goes-first" risk with an atomic net settlement solution
Rule # 3: Even if you are using a Qualified Custodian to control your assets and access liquidity, make sure you understand how their "Settlement Network" actually works under the hood. Generally, your assets are sent to liquidity providing counterparties (like BlockFills) for settlement. When your providers send assets out for settlement and then withdrawals get halted before settlement is completed, you may not get the assets owed to you.
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This is why you don't hold collateral with or access liquidity through so-called "Prime Brokers" in Crypto....they are taking tons of risk under the hood and do not have a big enough balance sheet. @bosonic_digital solves this with pure tech.
linkedin.com/posts/rmingargi…
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Yep, this was clear and helpful. Note the tokens that trigger Security-Based Swap treatment are ECP eligible only, which is a $10M threshold and very different from accredited investor eligibility.
🚨NEW: @SECGov staff just put out guidance on tokenized securities, laying out how federal securities laws apply and distinguishing between issuer-led and third-party tokenization models.
BOSONIC retweeted
🚨BREAKING: The @SECGov has issued a no-action letter saying that investment advisers can use state-chartered trust companies as qualified custodians for crypto assets.
What does this mean?
Under the Investment Advisers Act of 1940, advisers must keep client assets with a qualified custodian, usually a bank or a trust company with national fiduciary powers.
This guidance gives investment advisers and registered funds comfort that they can use a state trust company to custody crypto assets.
“This additional clarity was needed because state-chartered trust companies were not universally seen as eligible custodians for crypto assets,” Brian Daly, Director of the SEC’s Division of Investment Management told me.
Under this new staff guidance, state-chartered trust companies can now qualify for crypto custody if investment advisers do their due diligence and deem it in clients’ best interests.
Why does it matter?
It opens the door for more players in the crypto custody market as well as broader access for funds to custody crypto. Players such as @coinbase, @Ripple (through @StandardCustody), @BitGo, @WisdomTreeFunds and others will be recognized as qualified custodians.
“This is a staff letter, so at some point, this topic could be addressed by future rulemaking, Daly said. “We believe the market will benefit from having this guidance for today’s products, today’s managers, and today’s issues.”
BOSONIC retweeted
Next time, just use @bosonic_digital to earn some yield on these #Bitcoin thanks to our Repo marketplace (straight from your custody account) and without any counterparty risks!
bosonic.digital/solutions/fo…
Unfortunately for centralized exchanges like Coinbase, their internal trading between clients are just numbers in a database / on a general ledger, there is no #blockchain transaction with cryptographic proof of each trading transaction that happens on the exchange. You can't do this on an L1 of course, but Bosonic does it on an L2.
Further, on centralized exchanges there is no settlement to L1 when exchanges run omnibus accounts for clients, which means there is not even a periodic net settlement movement on L1 that can be used to checkpoint and memorialize the ownership state changes on L1.
Reminds us of how when Lehman Brothers blew up on September 15, 2008 it took over 14 years to finally figure out ownership of assets and attribute them correctly on September 28, 2022.
Blockchain fixes this.
Bosonic fixes this.
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Apparently an IT glitch due to the surge of traffic to Coinbase caused the many issues today while everyone's holdings there were safe. Their site was load tested for a 10x traffic surge and traffic exceeded that.
Providers in the #digitalasset space can ill afford concerns over risk on their platforms, and we're glad such a key player in the #crypto space didn't have anything beyond technological issues.
We built Bosonic to completely eliminate counterparty and credit risk when trading digital assets. That's why our customers didn't lose a dime when FTX or others collapsed. We'll continue to build and innovate to remove risk from the digital asset system.
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The Bank of England has assumed emergency powers over clearing houses.
The question is, why do we even need #clearinghouses?
#Blockchain based clearing and settlement can bring real-time gross settlement and on-chain financing can facilitate all the intra-day float with lower risk to the system and greater capital efficiency.
Get the friction out of the system!
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Really interesting article from @laurashin and @BrandyBetz.
Considering things from a local currency/ForEx lens isn't something you hear about often.
Interestingly, the similarities between FX and crypto - BUT the lack of a solution in the latter for liquidity aggregation and zero counterparty risk is what led to the birth of Bosonic.
You can check out our Founder @r_ingargiola talking about it with Laura in the clip:
The price of $BTC has reached all-time highs in the local currencies of 14 countries, notes @balajis. It’s still about 26% from its high in U.S. dollar terms, however.
@BrandyBetz reports
bit.ly/49mQmiB
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Seeing Michael J Fox at the BAFTA awards reminds us of this great line from BTTF:
"This is an oldie, but uh… well, it's an oldie where I come from."
That's how we feel about this from the very top of our website. May be new to you though so check it out!
👇
Trade with anyone, anywhere, without Counterparty Risk.
The absolute safest way to access global digital asset markets.
You just found the solution that everyone is looking for.
A financial ecosystem that covers trading, lending and borrowing that takes all the traditional risks and inefficiencies we see today and destroys them. Want proof?
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FFCSDT
In a financial world full of acronyms - BbB (Borrow by Bosonic) brings FFCSDT to the table.
What is it?
Flexibility
Flexible loan terms and Loan-to-Value (LTV) ratio using digital assets as collateral.
Free up cash
Access the value of your assets with a competitive collateralized loan.
Control
You hold your assets in your #custodian or wallet and the collateral assets remain in your control.
Security
Bosonic Borrow does not #rehypothecate your assets and they never leave your custodian or wallet.
Direct ownership
You retain direct ownership and possession of your assets. You never have to worry about #counterparty risk.
Tax benefits
#Borrowing against your assets could give you access to incredible tax benefits.
And it's all E-Z like Elmo likes it!
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Terms and Conditions.
Most of the time when you deal with T's and C's you're dealing with what is termed "contracts of adhesion". As in - sign it or don't do the deal. Think every time you update your software.
It can be very much that rigid when trying to borrow against digital assets in the current status quo.
Not with Borrow by Bosonic. On top of all the other tremendous benefits, your T's and C's are flexible and negotiable.
Check out more at bosonic.digital/solutions/bo…
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Full service is not something you hear a lot about in the tech world. Or gas stations.
But Bosonic Securities provides exactly that.
That's because Bosonic Securities is a technology-driven full-service firm authorized by the Financial Industry Regulatory Authority (FINRA) to operate a broker-dealer and an Alternative Trading System (ATS) for #equity and debt #securities, including Digital Asset Securities (i.e., securities that use #blockchain technology).
We advise issuers who want to issue and sell digital asset securities, as well as serve as placement agent to build a book and distribute the offering - plus - we work closely with custodians and transfer agents to facilitate the full lifecycle of issuance and secondary trading seamlessly.
Check out some of the dozens of world-class orgs already utilizing our services at bosonicsecurities.digital/
So you thought mortgage #rates were high? Try borrowing against your #digitalassets as #collateral.
Besides the hoops to jump through, cross-border challenges, and security risks, you'll have to face exorbitant rates that degrade your potential for gains right from the jump.
With Borrow by Bosonic we let you avoid all of the above, as well as give you transparent and competitive rates that set you up for success.
You can see more at bosonic.digital/solutions/bo…
