Amid the ongoing potential approval of spot Bitcoin Exchange Traded Funds (ETFs), Digital Prime Technologies, the digital asset technology solutions provider for financial institutions, launched Tokenet, an institutional digital asset lending platform. Tokenet is already being us...
Amid the ongoing potential approval of spot Bitcoin Exchange Traded Funds (ETFs),
Digital Prime Technologies, the digital asset technology solutions provider for financial institutions, launched Tokenet, an institutional digital asset lending platform. Tokenet is already being used by leading firms such as Xapo Bank and EDX. Tokenet: A new Crypto lending platformThis crypto lending platform was launched by a team of executives who previously headed the firm Cantor Fitzgerald, a financial services firm. The reason for launching this new crypto lending platform, Tokenet, is to cater to the majority of institutional clients if the United States approves a spot Bitcoin ETF.
Tokenet made a statement that this lending platform will enable institutional clients to borrow and lend digital assets and help them manage their collateral. It also provides risk management tools for institutions to manage or reduce counterparty risks, similar to what is done in traditional finance. Digital Prime Technologies’ Tokenet backed by leading institutionsAs of now, Digital Prime Technologies’ lending platform, “Tokenet,” is already backed by many institutions, 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 markets and regulatory headwinds, Tokenet’s launch is an important and exciting step toward establishing trust and transparency in digital asset lending. This platform redefines digital asset lending and embraces the regulatory safeguards of traditional finance.”
Many firms have entered the crypto lending industry before, including Voyager Digital, Celsius Network, and BlocFi, and they have also faced failure. Despite this, Digital Prime Technologies’ lending platform, “Tokenet,” has entered this crypto lending space.
The growing role of lending services in the Crypto space
Cryptocurrency exchange giants like Coinbase and Binance are increasingly relying on lending services to boost their revenues, assuring investors that they have learned from the setbacks that plagued the crypto lending sector in 2022, leading to the bankruptcy of several high-profile firms.
Tokenet’s launch is well-timed and coincides with the overall optimism in the crypto market surrounding the potential approval of a spot Bitcoin ETF. While approval is not guaranteed,
Bloomberg ETF analysts have estimated a 90% likelihood of approval by January of next year.© Todayq News