Following the possible approval of a spot Bitcoin ETF, the new platform Tokenet intends to capitalize on institutional interest.
After the prospective approval of a spot, BTC exchange traded fund (ETF) by the United States, a new crypto-lending platform known as Tokenet says it will accommodate an anticipated influx of institutional clients.Â
A group of executives, including the former leader of financial services firm Cantor Fitzgerald and the current members of Digital Prime Technologies, a brokerage firm, developed the platform.
When firms borrow and lend digital assets while administering collateral positions, Tokenet announced in a statement on November 7. In the same manner as conventional finance, the platform gives institutions access to risk management tools that enable them to mitigate counterparty risks.
Numerous cryptocurrency firms, such as DV Chain, Hidden Road Partners, Xapo Bank, and EDX Clearing, have already endorsed the Tokenet platform developed by Digital Prime Technologies.
The co-founder and CEO of Digital Prime Technologies, James Runnels, remarked, “In light of the current regulatory and market conditions, the launch of Tokenet is an exciting and crucial step toward establishing trust and transparency in digital asset lending.”
After the failures of Voyager Digital, Celsius Network, and BlockFi, Tokenet becomes the latest in many organizations attempting to adopt cryptocurrency lending.
Stimulating investors with assurances that they have learned their lessons from the crypto lending catastrophe 2022, which bankrupted several prominent firms, crypto exchange titans, including Coinbase and Binance, have heavily relied on lending offerings to bolster declining revenues.
A wider crypto market frenzy surrounding the imminent approval of a spot Bitcoin ETF bolsters the introduction of Tokenet. Bloomberg ETF analysts have estimated a 90% chance that an approval will occur before January of the following year, although this is not assured.
I've gotten a lot of questions regarding my current view on Spot #Bitcoin ETFs over the last couple weeks. This is the first section of the note I put out yesterday with @EricBalchunas.
TLDR: Our view hasn't changed much https://t.co/dRAm5IsdQf pic.twitter.com/Htsi3n2XxV
— James Seyffart (@JSeyff) October 13, 2023Crypto lending companies like Tokenet may benefit from the increased demand for Bitcoin borrowed by institutions if a spot Bitcoin ETF is authorized.
Bob Sherry, the current COO of Digital Prime Technologies, was formerly the COO of Prime Services at Cantor Fitzgerald until 2018. Runnels was formerly the managing director of Cantor Fitzgerald.
