A new cryptocurrency lending platform called Tokenet says it will serve an expected influx of institutional clients following the potential approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States.
The platform was launched by a team of senior executives who previously led financial services firm Cantor Fitzgerald and later joined a new brokerage called Digital Prime Technologies.
On a November day. 7 statementTokenet said it will allow businesses to borrow and lend digital assets while managing collateral positions. The platform also provides risk management tools that enable institutions to mitigate counterparty risk just like in traditional finance.
Digital Prime Technologies’ Tokenet platform has received support from a number of cryptocurrency companies, including Hidden Road Partners, Xapo Bank, EDX Clearing and DV Chain.
James Runnels, co-founder and CEO of Digital Prime Technologies, said: “Given the current market and regulatory headwinds, the launch of Tokenet is an important and exciting step towards building trust and transparency in the digital asset lending space.”
Tokenet joins a growing number of companies looking to embrace crypto lending following the collapse of lenders such as Voyager Digital, Celsius Network and BlockFi.
To shore up declining revenues, cryptocurrency exchange giants including Coinbase and Binance have been relying heavily on lending products while assuring investors that they have learned from the mistakes of the 2022 crypto lending disaster that led to Many well-known companies went bankrupt. .
related: Analyst: Bitcoin rally triggered by spot ETFs may not necessarily last
The launch of Tokenet is driven by enthusiasm in the wider cryptocurrency market for the impending approval of a spot Bitcoin ETF. While approval is not guaranteed, Bloomberg ETF analysts predict a 90% chance of approval by January next year.
I get a lot of questions about my current thoughts on Spot #bitcoin ETFs over the past few weeks.This is the first part of the note I posted yesterday @ericbalciunas.
TLDR: Our views haven’t changed much pic.twitter.com/Htsi3n2XxV
— James Seyff (@JSeyff) October 13, 2023
If a spot Bitcoin ETF is approved, cryptocurrency lending companies like Tokenet will benefit from the flood of institutions looking to borrow Bitcoin.
Runnels previously served as managing director of Cantor Fitzgerald, while Digital Prime Technologies chief operating officer Bob Sherry previously served as chief operating officer of Cantor Prime Services until 2018.
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