A New Crypto-Lending Platform Tokenet Set to Launch in Anticipation of Potential Approval of Bitcoin ETF
In a move that anticipates the potential approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States, a new crypto-lending platform called Tokenet has been launched. The platform is geared towards servicing what it expects to be an influx of institutional clients.
Tokenet has been established by a team of executives formerly associated with financial services firm Cantor Fitzgerald, who have since joined a new brokerage firm called Digital Prime Technologies. According to a statement released on Nov. 7, Tokenet will enable firms to borrow and lend digital assets while managing collateral positions, and will also offer risk management tools that allow institutions to mitigate counterparty risks as they would in traditional finance.
The platform has already garnered support from several notable crypto firms including Hidden Road Partners, Xapo Bank, EDX Clearing, and DV Chain. Commenting on the launch, James Runnels, co-founder, and CEO of Digital Prime Technologies, emphasized the importance of Tokenet’s launch, particularly in light of the current market conditions and regulatory challenges.
Tokenet enters a market where various companies are seeking to enter the crypto lending space following the collapse of prominent lenders such as Voyager Digital, Celsius Network, and BlockFi. As major crypto exchange giants including Coinbase and Binance have delved into lending offerings, they have also assured investors that they have learned from the mistakes that led to the crypto lending disaster of 2022, which resulted in the bankruptcy of several high-profile firms.
The launch of Tokenet aligns with the growing anticipation in the wider crypto market surrounding the potential approval of a spot Bitcoin ETF. Bloomberg ETF analysts have estimated the likelihood of an approval at 90% before January next year, further bolstering the enthusiasm in the crypto market. Should a spot Bitcoin ETF be approved, lending firms like Tokenet are poised to benefit from the increasing demand from institutions looking to borrow Bitcoin.
Runnels, who previously held the position of managing director at Cantor Fitzgerald, has joined forces with Bob Sherry, the COO of Digital Prime Technologies and former COO of Prime Services at Cantor until 2018, in establishing Tokenet. This strategic alliance between industry veterans signals a strong entry into the evolving landscape of institutional digital asset lending.
As the crypto market eagerly awaits a potential milestone with the approval of a spot Bitcoin ETF, platforms like Tokenet stand ready to capitalize on the growing demand from institutional investors seeking exposure to digital assets within a regulated ecosystem.
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