Blockchain and cryptocurrency company DMG Blockchain Solutions has invested $2 million in Bosonic, a provider of critical infrastructure eliminating counterparty credit and settlement risk in digital asset markets.
The move is designed to develop DMG’s Blockseer Core+ strategy by providing access to Bosonic’s institutional exchange and Layer-2 blockchain-powered clearing and settlement solutions.
“By completing this transaction, DMG’s new partnership will help the company develop more financial service-related functionality for the Blockseer ecosystem,” DMG CEO Sheldon Bennett said. “This initiative represents significant potential monetization of existing Blockseer clients and the ability of DMG for the first time to aggressively enter the consumer market for Blockseer platforms.”
The DMG investment is part of a larger strategic investment into Bosonic that eventually converts into Bosonic preferred shares. DMG receives these preferred shares based on a 25 per cent discount to a pre-money valuation in Bosonic’s next equity financing round or a $200 million market capitalization, whichever is lower. Bennett will serve a term on the Bosonic board as part of the transaction.
DMG views this as a critical move in reaching its strategic goal to become truly vertically integrated. In the future it could offer customers access to a Blockseer based crypto exchange platform. Additionally, with the recent investment in Brane Capital and DMG’s agreements to onboard Brane’s technology to the Breeze and Freeze wallets, DMG will soon have a custody solution adding to Bosonic’s suite of services, thus providing incremental potential revenue to both partners.
DMG’s planned Petra release (in Beta testing) has also been negotiated as a future product available to all users of Bosonic via Blockseer’s exchange.
“We are extremely excited to partner with DMG, whose Blockseer platform will power the world’s first digital asset ecosystem consisting entirely of clean energy mined and OFAC clean crypto. We believe this will help accelerate adoption of cryptocurrencies by institutions and fiduciaries with its integrated mining, independent custody, and various trade execution facilities within a single environment. This initiative will set a new standard for ESG conscious investors interested in digital assets,” said Rosario Ingargiola, founder and CEO of Bosonic.