Bosonic settles first trade using cross-custodian net settlement
09 December 2022 UK
Image: putilov_denis/stock.adobe.com
Decentralised financial market infrastructure business Bosonic has settled a USDC and ETH trade using cross custodian net settlement (CCNS).
The trade was executed, cleared and settled atomically between digital asset custodians First Digital and Propine.
By using CCNS, custodians can net settle on behalf of their institutional clients who are using the Bosonic Network, or digital asset venues that use Bosonic Enterprise, to trade.
Through CCNS, custodians can load digital assets that need to be physically delivered onto Layer-1 public blockchain protocols, in the form of a CCNS Smart Contract. By using this system, Bosonic says, counterparty credit and settlement risk are mitigated, balance sheet efficiency is improved and intraday exposures are minimised.
Rosario Ingargiola, CEO of Bosonic, comments: “CCNS will effectively eliminate counterparty credit and settlement risk in digital asset markets with atomic exchange, both trader-to-trader in real-time, and now custodian-to-custodian for net settlement movements. We have a growing network of custodians in the working group that are about to go live.”
Tuhina Singh, CEO of Propine, adds: “The CCNS network, connecting the custodians globally, provides a necessary layer of infrastructure, absolutely crucial to realising the full potential of, what is essentially and natively, a global asset class. We are glad to be part of this network at its genesis and are committed to growing the industry.”
The trade was executed, cleared and settled atomically between digital asset custodians First Digital and Propine.
By using CCNS, custodians can net settle on behalf of their institutional clients who are using the Bosonic Network, or digital asset venues that use Bosonic Enterprise, to trade.
Through CCNS, custodians can load digital assets that need to be physically delivered onto Layer-1 public blockchain protocols, in the form of a CCNS Smart Contract. By using this system, Bosonic says, counterparty credit and settlement risk are mitigated, balance sheet efficiency is improved and intraday exposures are minimised.
Rosario Ingargiola, CEO of Bosonic, comments: “CCNS will effectively eliminate counterparty credit and settlement risk in digital asset markets with atomic exchange, both trader-to-trader in real-time, and now custodian-to-custodian for net settlement movements. We have a growing network of custodians in the working group that are about to go live.”
Tuhina Singh, CEO of Propine, adds: “The CCNS network, connecting the custodians globally, provides a necessary layer of infrastructure, absolutely crucial to realising the full potential of, what is essentially and natively, a global asset class. We are glad to be part of this network at its genesis and are committed to growing the industry.”
← Previous technology article
Swiss banks advance tokenisation PoC as foundation for alternative financial infrastructure
Swiss banks advance tokenisation PoC as foundation for alternative financial infrastructure
Next technology article →
BNY Mellon employs Baton Core-Collateral in its collateral optimisation platform
BNY Mellon employs Baton Core-Collateral in its collateral optimisation platform
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
