Bosonic, a decentralized Financial Market Infrastructure (dFMI) business has today announced the formation and launch of the Bosonic Cross-Custodian Net Settlement (CCNS) Working Group with several of the industry’s leading digital asset custodians, exchanges and banks.
The industry group will be spearheaded by Bosonic and will include a worldwide network of digital asset custodians such as First Digital in Hong Kong, Tetra Trust in Canada and Vast Bank in the United States, with other custodian banks as well as major financial institutions and exchanges participating and soon to be announced.
This is an industry first to include a range of institutional custodians from around the world undertaking net settlements and payments for digital assets and fiat via a layer-2 blockchain. The Working Group will help establish the protocol and best practice between custodians around the world on the Bosonic Network™ as part of the launch of Bosonic’s Cross-Custodian Net Settlement platform, which has been developed to:
- Support institutional cross-custodian trading and payments with net settlement calculations and movements
- Atomic burn and reallocation of netted quantities on Layer-2 blockchain together with physical movement of residual quantities for digital assets and fiat currencies on Layer-1 Smart Contracts
- Assess benefits of interoperability with relevant stablecoins for the fiat residuals
Rosario Ingargiola, Bosonic CEO said, “As an industry first, and as the only custodian-agnostic payment versus payment settlement network on a working layer-2 blockchain, we are excited to further collaborate with a growing network of partners and clients across the world as we roll-out Cross-Custodian Net Settlement. The adoption of the Bosonic Network™ continues to go from strength to strength as the industry looks to eliminate counterparty credit and settlement risk.”
Vincent Chok, CEO of First Digital responded, “We’re pleased to announce our collaboration with Bosonic as we work together to break down silos and enhance coordination with institutional-grade partners across regions. We’re looking forward to working together to further develop the strength, quality and robustness of digital asset infrastructure as we help bridge the worlds of traditional and digital finance.”
“One of our core promises to customers is that we are embracing constant change, and the establishment of this group signifies that we are building on that commitment to innovation,” said Brad Scrivener, CEO of Vast Bank. “We’re proud to be supporting institutions by working to increase liquidity, standardization, and security with digital assets.”
The Bosonic Network™ is a best-in-class and unique infrastructure for institutional clients, connecting to exchanges and market makers, and enabling a payment versus payment atomic swap for instantaneous settlement on a layer-2 blockchain operated by digital asset custodians.