In anticipation of the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States, a new crypto lending platform named Tokenet has been launched. The platform is poised to serve the expected surge in institutional interest in the crypto market following the potential approval of the Bitcoin ETF.
Tokenet has been introduced by a team of former executives from the financial services firm Cantor Fitzgerald, who have since joined a new brokerage firm called Digital Prime Technologies.
In a statement issued on November 7, Tokenet unveiled its mission to facilitate borrowing and lending of digital assets for institutional clients while enabling them to manage collateral positions. The platform also provides risk management tools that allow institutions to mitigate counterparty risks, similar to traditional financial systems.
Digital Prime Technologies’ Tokenet platform has already garnered support from several prominent crypto firms, including Hidden Road Partners, Xapo Bank, EDX Clearing, and DV Chain.
James Runnels, co-founder and CEO of Digital Prime Technologies, emphasized the importance of Tokenet’s launch in the current market and regulatory environment. He described it as a significant step towards establishing trust and transparency in digital asset lending.
Tokenet joins a growing list of companies that are venturing into the crypto lending space, driven by the collapse of previous lenders such as Voyager Digital, Celsius Network, and BlockFi.
To bolster their revenues, major crypto exchanges like Coinbase and Binance have also delved into lending offerings. They have assured investors that they have learned from the crypto lending crisis of 2022, which led to the bankruptcy of several high-profile firms.
Tokenet’s launch is closely tied to the broader enthusiasm in the crypto market for the potential approval of a spot Bitcoin ETF. While approval is not guaranteed, Bloomberg ETF analysts estimate a 90% likelihood of approval before January of the coming year.
If a spot Bitcoin ETF receives approval, crypto lending platforms like Tokenet are poised to benefit from the influx of institutions seeking to borrow Bitcoin.
Notably, James Runnels, who was formerly the Managing Director at Cantor Fitzgerald, and Bob Sherry, the Chief Operating Officer of Digital Prime Technologies, previously served as the COO of Prime Services at Cantor until 2018. Their experience and industry knowledge make them well-positioned to navigate the evolving landscape of digital asset lending.