How to Do Prime Brokerage Without Prime Brokers

As investment banks shrink the balance sheet available to buy-side firms that like to trade on credit, the need for an alternative has become urgent. To fill the gap, San Francisco-based Bosonic has adapted the tokenisation and atomic settlement techniques pioneered by the crypto-currency markets. By making settlement of each half of a trade conditional on the delivery of the other half, the need for intermediation by bank is eliminated. And tokenisation of securities in custody on to a blockchain network allows fully funded assets to be used as collateral for credit without leaving their custody account. Rosario Ingargiola, CEO of Bosonic, told Dominic Hobson how it all works.



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