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December 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, one of the fastest growing U.S.-regulated digital asset exchanges, is the first exchange to be added to the Bosonic network. Any institution using a custodian on the Bosonic network can now trade on CrossTower without shifting assets to CrossTower or needing to establish any credit lines.
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.”
Today, CrossTower operates two exchanges, CrossTower Global supports international customers and CrossTower US supports domestic United States customers.
