Bitpanda And Bosonic Network Merges to Provide Institutional Crypto Custody Services
- The merger will enable Bitpanda custody to meet its institutional clients’ demand for a UK-based crypto custodian. Bitpanda’s custody has received more of these requests in recent times.
On Thursday, June 30, Bosonic and Bitpanda announced the merger of the two companies. Bosonic is a rising provider of decentralized financial market infrastructure (dFMI), while Bitpanda is among the most popular fintech startups in Europe.
Through the merger, Bitpanda can start providing crypto custody services for its institutional clients based in the UK.
The merger also means that Bitpanda will be involved in launching Bosonic’s Cross-custodian Net Settlement service. The launch has been scheduled for the last quarter of this year.
BitPanda and Bososnic at a Glance
It is the first time in the industry that there would be a payment versus payment (PvP) atomic swap settlement. This PvP settlement will allow institutional and independent custodians to collaborate.
Also, it eliminates risk related to counterparty credits and settlement among these players. While speaking on the merger, Bosonic Chief Executive, Rosario Ingargiola, said that there is a huge request for personalized custody offered by FCA-regulated custodians. Ingargiola added that this demand has become incessant due to greater interest from the institutional digital asset space, especially by the family office or wealthy sector.
These clients attach huge importance to the protection of their privacy and assets. Hence, they want custodians that they can hold in legal trust for their assets. Ingargiola expressed delight that the Bosonic network can help Bitpanda custody provide this service for their top clients.
Bitpanda custody CEO, Alex Batlin, further said that the merger would enable Bitpanda custody to improve its capital efficiency and lower its daily settlement risks and costs. More importantly, they are working with an insured crypto custodian with the appropriate regulatory license
The Bosonic network has been providing institutional clients with a liquidity patented solution for nearly five years. Also, it provides its clients with contract-less custody services. Also, the Bosonic network provides exchanges and market-makers with other services such as asset and collateral tokenization and liquidity aggregation.
However, Bosonic is well known for its real-time payment vs. payment (PvP) atomic settlement services. That service includes cross custodian and cross-margining net settlements and payments. The Bosonic network also includes a full front-to-back enterprise solution.
Under this enterprise solution, Bosonic deploys its white-label software-as-a-service to various broker crypto-asset platforms. Bitpanda custody is a subsidiary of the popular crypto brokerage platform, Bitpanda.
Bitpanda started its business operations eight years ago in Vienna. However, it launched its Bitpanda custody services early this year. The crypto platform is regarded as one of the fast-rising fintech firms in Europe. It already boasts more than 3 million users and over 700 staff within its short existence.