In a remarkable development, a group of former Cantor Fitzgerald executives has boldly entered the realm of crypto lending through the introduction of Tokenet, a cutting-edge platform developed by Digital Prime Tokenet, based in Jersey City, New Jersey, is already enabling clients, including Xapo Bank, to lend out digital assets to prominent entities such as EDX Clearing and global institutional credit network Hidden Road Partners. This development comes with a suite of risk-management tools and a convenient chat functionality, empowering users to efficiently manage loans.
The introduction of Tokenet comes in response to a market vacuum created by the decline of prominent crypto lenders like Genesis, Celsius, and BlockFi. This vacuum, which emerged in the crypto lending industry last year, severely limited available options and contributed to reduced trading volumes into 2023.
Furthermore, Tokenet’s launch aligns with growing optimism surrounding the impending approval of a Bitcoin ETF in the United States. If approved, the platform anticipates that ETF issuers will experience a surge in demand for borrowing Bitcoin, reigniting the crypto lending sector.
James Runnels, CEO of Digital Prime Technologies, expressed, “It’s almost like a rebirth of crypto lending,” underscoring the potential resurgence. For instance, authorized participants may opt to borrow Bitcoin if they need to create new inventory for the ETF when its price surges, and subsequently buy it at a lower rate.
The Digital Prime team, with a wealth of experience from Cantor Fitzgerald, has positioned Tokenet as a Finra-registered broker-dealer with seed funding from notable investors like TD Cowen Inc. This promising development is set to reshape the landscape of crypto lending, providing vital support for Bitcoin ETF operators.Technologies. This platform is strategically positioned to serve the operators of spot Bitcoin exchange-traded funds (ETFs), pending their acquisition of regulatory approval in the United States.
