Tokenet: New Crypto-Lending Platform Eyes Institutional Clients, Poised for Possible Spot Bitcoin ETF Approval
Summary:
Tokenet, a new crypto-lending platform, has been launched with aims to service potential institutional clients following a possible approval of a spot Bitcoin ETF in the United States. Spearheaded by former executives of financial firm Cantor Fitzgerald, Tokenet plans to facilitate firms to borrow and lend digital assets while managing collateral positions. The platform promises risk mitigation tools for institutions against counterparty risks. Tokenet joins an increasing list of companies delving into crypto lending, learning from previous industry failures and anticipating an influx of institutions seeking to borrow Bitcoin with the imminent Bitcoin ETF approval.
Tokenet, a freshly introduced crypto-lending platform, is poised to cater to a potential surge of institutional customers in anticipation of the United States endorsing a spot Bitcoin (BTC) exchange traded fund (ETF). The platform is a brainchild of senior executives from the financial firm, Cantor Fitzgerald, currently associated with Digital Prime Technologies, a new brokerage entity. On 7th November, Tokenet proclaimed that it will facilitate businesses to lend and borrow digital currencies, along with handling collateral positions. It further provides risk management mechanisms to institutions, aiding them in averting counterparty risks, akin to mainstream finance practices. Tokenet, under the umbrella of Digital Prime Technologies, already enjoys support from prominent crypto companies such as Hidden Road Partners, Xapo Bank, EDX Clearing, and DV Chain. James Runnels, Digital Prime Technologies' CEO and co-founder, hailed Tokenet's inception in the face of market and regulatory tumult, marking it as a pivotal stride towards instilling faith and transparency in digital lending spheres.
Tokenet is a part of an expanding group of businesses venturing into crypto lending, in the backdrop of the downfall of firms like Voyager Digital, Celsius Network, and BlockFi. Crypto trading heavyweights like Coinbase and Binance are diligently focusing on lending services to bolster dwindling revenues while ensuring investors that they have incorporated learnings from the 2022 crypto lending fiasco that led several well-known companies into bankruptcy.
Associated with the broader crypto market's enthusiasm for a potential sanction of a spot Bitcoin ETF, Tokenet's initiation is well-received. The approval has no guarantee, but Bloomberg's ETF analysts put the approval odds at a high 90% before January next year. If the spot Bitcoin ETF gets the go-ahead, crypto lending enterprises such as Tokenet are set to benefit from the incoming wave of institutions wishing to borrow Bitcoin.
James Runnels, the previous managing director of Cantor Fitzgerald, is currently holding the reins of Digital Prime Technologies. Meanwhile, Bob Sherry, once the COO of Prime Services at Cantor, is now the COO of Digital Prime Technologies.
Published At
11/8/2023 2:06:04 AM
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