Ex-Cantor execs launch crypto lending platform with Bitcoin ETFs
A new crypto-lending platform called Tokenet says it will serve what it expects to be an influx of institutional clients following the approval of a US spot Bitcoin (BTC) exchange-traded fund (ETF).
The platform was started by a group of executives who previously ran financial services firm Cantor Fitzgerald after joining a new brokerage firm called Digital Prime Technologies.
In a statement on November 7, Tokenet said it would allow companies to borrow and lend digital assets while managing collateral. The platform provides risk management tools that allow institutions to mitigate collateral risks as they would in traditional finance.
Digital Prime Technologies' Tokenet platform is already supported by several crypto organizations including Hidden Street Partners, Xapo Bank, EDX Clearing and DV Chain.
“Given the current markets and regulatory windfall, Tokenet's launch is an important and exciting step toward establishing trust and transparency in digital asset lending,” said James Runnells, founder and CEO of Digital Prime Technologies.
Tokenet joins the list of companies looking to accept crypto loans following the collapse of lenders including Voyager Digital, Celsius Network and BlockFi.
To shore up declining revenues, crypto exchange giants including Coinbase and Binance announced in 2018 that In 2022, investors fully relied on credit offerings as they confirmed that they had learned from the mistakes of the crypto credit crash that brought down several well-known companies. .
Related: Spot ETF-Induced Bitcoin Rally Not Guaranteed to Post: Analysts
Tokenet's launch is an endorsement of the Bitcoin ETF space that is being offered due to the enthusiasm of the broader crypto market. While approval is not guaranteed, Bloomberg EFF analysts put the probability of approval before January next year at 90 percent.
Over the last couple of weeks I've gotten a lot of questions regarding my view on the Spot #Bitcoin ETF. This is the first part of my memo yesterday with Eric Balchunas.
TLDR: Our view hasn't changed much pic.twitter.com/Htsi3n2XxV
— James Seyff (@JSeyff) October 13, 2023
If a Bitcoin ETF is approved somewhere, crypto lending firms like Tokenet will get a flood of institutions looking to borrow Bitcoin.
Runnels was previously a managing director at Cantor Fitzgerald, and Bob Sherry, COO of Digital Prime Technologies, was previously COO of Prime Services at Cantor until 2018.
Magazine: Beyond Crypto – Zero-Knowledge Proofs From Voting to Finance
