Decentralised financial market infrastructure Bosonic has launched the Bosonic Cross-Custodian Net Settlement Working Group, which includes a global network of digital asset custodians, exchanges and banks.
Participants in the industry group include First Digital in Hong Kong, Tetra Trust in Canada and Vast Bank in the US.
Other major financial institutions and exchanges participating in the group are expected to be announced soon.
The working group marks an industry-first by including global institutional custodians, who will undertake net settlements and payments for digital assets via a Layer-2 blockchain.
The group will primarily help to establish protocol and best practices between custodians on the Bosonic Network as part of the launch of Bosonic’s cross-custodian net settlement platform.
The platform has been developed to support institutional cross-custodian trading and payments with net settlement calculations and movements, as well as to facilitate the atomic burn and reallocation of netted quantities on Layer-2 blockchain together with the physical movement of residual quantities for digital assets and currencies on Layer-1 smart contracts.
Rosario Ingargiola, CEO of Bosonic, comments: “As an industry first, 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, adds: “We are 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 are 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.”
