A brand new crypto-lending platform dubbed Tokenet says it can service what it expects to be an inflow of institutional purchasers following the potential United States approval of spot Bitcoin (BTC) change traded fund (ETF).
The platform was launched by a crew of executives who beforehand headed monetary providers agency Cantor Fitzgerald who since joined a brand new brokerage agency referred to as Digital Prime Applied sciences.
In a Nov. 7 assertion, Tokenet mentioned it can permit companies to borrow and lend digital property whereas managing collateral positions. The platform additionally provides threat administration instruments which permit establishments to mitigate counterparty dangers as they might in conventional finance.
Digital Prime Applied sciences’ Tokenet platform is already backed by various crypto companies together with Hidden Street Companions, Xapo Financial institution, EDX Clearing and DV Chain.
“Given the present markets and regulatory headwinds, Tokenet’s launch is a vital and thrilling step in direction of establishing belief and transparency in digital asset lending,” mentioned James Runnels, Digital Prime Applied sciences co-founder and CEO.
Tokenet joins a rising roster of corporations looking for to embrace crypto lending following the collapse of lenders together with Voyager Digital, Celsius Community and BlockFi.
In a bid to bolster declining revenues, crypto change giants together with Coinbase and Binance have leaned closely on lending choices all of the whereas assuring buyers that they’ve discovered from the errors of the crypto lending catastrophe of 2022 which bankrupted various high-profile companies.
Associated: Spot ETF-induced Bitcoin rally isn’t assured to stay: Analysts
Tokenet’s launch is buoyed by the broader crypto market enthusiasm for an impending approval of a spot Bitcoin ETF. Whereas an approval isn’t assured, Bloomberg ETF analysts have pegged the probability of an approval at 90% earlier than January subsequent yr.
I’ve gotten numerous questions relating to my present view on Spot #Bitcoin ETFs over the past couple weeks. That is the primary part of the be aware I put out yesterday with @EricBalchunas.
TLDR: Our view hasn’t modified a lot pic.twitter.com/Htsi3n2XxV
— James Seyffart (@JSeyff) October 13, 2023
If a spot Bitcoin ETF is accredited, crypto lending companies comparable to Tokenet stand to achieve from the inflow of establishments seeking to borrow Bitcoin.
Runnels was beforehand the managing director at Cantor Fitzgerald, whereas the COO of Digital Prime Applied sciences, Bob Sherry was beforehand COO of Prime Companies at Cantor till 2018.
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