Bosonic and Sound Money Solutions Target 'Unsustainable' Crypto Exchange Custody Model

In a move aimed at addressing persistent vulnerabilities in cryptocurrency trading infrastructure, Bosonic and Sound Money Solutions announced a partnership today focused on advancing non-custodial digital asset settlement frameworks.

The collaboration comes amid growing concerns about centralised exchanges following several high-profile security incidents, including the recent ByBit breach and the earlier FTX collapse that resulted in billions of dollars in losses for investors.

The partnership will combine Bosonic's blockchain-based settlement platform with Sound Money Solutions' self-custody expertise to create infrastructure that eliminates the need for third-party asset custody while maintaining access to global liquidity.

"The current model is unsustainable," said Rosario Ingargiola, CEO and Founder of Bosonic. "ByBit's breach underscores a dire truth: custodial exchanges are honeypots for hackers. We must build infrastructure that removes reliance on third parties entirely—and this partnership with Sound Money Solutions delivers that future."

According to the companies, centralised exchanges have long presented systemic risks through single points of failure and counterparty exposure, leading to significant financial losses through hacks, fraud and insolvency.

Max Hillebrand, Co-Founder and Head of Security at Sound Money Solutions, emphasised the importance of self-custody in the digital asset space: "Self-custody isn't optional—it's essential. Our goal is to empower every participant, from retail traders to institutions, with the tools and expertise to control their assets confidently. Whether you're a retail trader or an institution, you deserve tools that let you control your assets and thrive in confidence. Our partnership with Bosonic moves us closer to a future free from fear of insolvencies, hacks, and mismanagement."

Bosonic's technology enables users to maintain control of their assets through real-time, on-chain ownership verification without requiring pre-funding. The platform utilises atomic settlement to execute trades across multiple custodians instantly while eliminating credit risk through cross-custodian net settlement processes.

Complementing this infrastructure, Sound Money Solutions provides comprehensive self-custody frameworks including secure private key management and disaster recovery protocols for compromised keys or lost access scenarios.

The companies are advocating for broader industry change, urging investors to demand platforms with real-time ownership transparency and self-custody support, while encouraging custodians to implement infrastructure that preserves client control over assets.

Bosonic, headquartered in the United States, operates through its subsidiary Bosonic Securities, an SEC-registered broker-dealer that runs an Alternative Trading System for trading equity, debt and digital asset securities.

Sound Money Solutions, which focuses on Bitcoin self-custody solutions, offers consultation services to help individuals and businesses secure their digital assets.