Leading crypto custody solutions provider Trustology, and FCA-regulated broker, GCEX have today announced an expanded partnership with San Francisco based Bosonic, a leading global technology company that builds infrastructure to eliminate counterparty credit and settlement risk in Digital Asset markets for institutional clients. Together, the partnership will help to improve overall capital efficiency for institutional traders and eliminate counterparty settlement risk in digital asset trading.
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Institutions still suffer from inefficiencies in the trading and settlement process. As traded assets leave their control and move through the workflow of dealers, exchanges and brokers, institutional traders face balance sheet limitations leading to slow, multi-leg bilateral transactions, siloed collateral, counterparty credit risk, and general capital inefficiencies.
More assurances are still needed for verified counterparties, guaranteed transactions and instant settlement to help mitigate settlement and operational risks, especially when margin trading. Whilst there are solutions in the market today, providing an open network partnership as proposed by the combination of GCEX, leveraging Trustology and Bosonic to address these issues is more advantageous, the benefits of which are outlined below.
Bosonic created the Bosonic Network™, a real-time collateral management, payments and settlement network that leverages cryptography to eliminate risk in digital asset markets, as a foundational element to being able to build solutions that solve these problems. Through the digitization of assets, real-time atomic exchange of assets, and automation, the Bosonic Network delivers instant and risk-free clearing and settlement between any clients of custodians that are member institutions on the network.
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Trustology will use the Bosonic Network to tokenise escrowed funds allowing liquidity makers and takers to trade with multiple counterparties off a single guaranteed capital pool, avoiding capital fragmentation and settlement risk. With Trustology executing netted settlements and acting as the sole custodian on both sides of the trade, they also save on transaction costs. GCEX’s institutional-grade and regulated platform, with clear pricing models, especially on overnight financing, allows our clients to avoid transparency issues that have mired the crypto industry thus far. GCEX tries to alleviate problems of best execution and counterparty risk, bringing crypto trading into up-to-date frameworks.
GCEX is a non-custodial, technology-agnostic platform. Developed for institutions who wish to access the crypto market in a compliant, insured and regulated manner.
“As an insured custodian wallet provider, we provide a super-fast, highly secure, customisable and programmable platform for institutions. Now in conjunction with GCEX and Bosonic, we can ensure facilitating efficient settlement and improving risk mitigation in one network,” states Alex Batlin, Founder and CEO, Trustology.
Lars Holst, CEO, “GCEX sources the deepest liquidity for its clients all over the world, allowing our clients to access crypto in a compliant and institutional manner. Counterparty and custody risks rank some of the most common concerns of our clients. We hope by adding ourselves to the network, along with our partners, allows institutions to access this new developing market.”
Rosario Ingargiola, CEO and Founder of Bosonic said: “By seamlessly connecting the safety of Trustology’s digital asset storage with the freedom to access deep, institutional liquidity at GCEX through the Bosonic Network, our clients now have capital efficient access to GCEX. Our unique custodian-agnostic solution enables them to trade on GCEX liquidity while keeping their assets in their own account at the custodian of their choosing.”
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