Ex-Cantor execs launch crypto lending platform in expectation of Bitcoin ETFs

A brand new crypto-lending platform dubbed Tokenet says it should service what it expects to be an inflow of institutional shoppers following the potential United States approval of spot Bitcoin (BTC) trade traded fund (ETF). 

The platform was launched by a staff of executives who beforehand headed monetary companies agency Cantor Fitzgerald who since joined a brand new brokerage agency referred to as Digital Prime Applied sciences.

In a Nov. 7 statement, Tokenet mentioned it should enable corporations to borrow and lend digital property whereas managing collateral positions. The platform additionally gives threat administration instruments which permit establishments to mitigate counterparty dangers as they might in conventional finance.

Digital Prime Applied sciences’ Tokenet platform is already backed by plenty of crypto corporations together with Hidden Highway Companions, Xapo Financial institution, EDX Clearing and DV Chain.

“Given the present markets and regulatory headwinds, Tokenet’s launch is a crucial and thrilling step in direction of establishing belief and transparency in digital asset lending,” mentioned James Runnels, Digital Prime Applied sciences co-founder and CEO.

Tokenet joins a rising roster of corporations in search of to embrace crypto lending following the collapse of lenders together with Voyager Digital, Celsius Community and BlockFi.

In a bid to bolster declining revenues, crypto trade giants including Coinbase and Binance have leaned heavily on lending choices all of the whereas assuring traders that they’ve learned from the mistakes of the crypto lending catastrophe of 2022 which bankrupted a number of high-profile firms.

Associated: Spot ETF-induced Bitcoin rally isn’t guaranteed to stick: Analysts

Tokenet’s launch is buoyed by the broader crypto market enthusiasm for an impending approval of a spot Bitcoin ETF. Whereas an approval just isn’t assured, Bloomberg ETF analysts have pegged the probability of an approval at 90% earlier than January subsequent yr.

I’ve gotten a variety of questions concerning my present view on Spot #Bitcoin ETFs during the last couple weeks. That is the primary part of the observe I put out yesterday with @EricBalchunas.

TLDR: Our view hasn’t modified a lot https://t.co/dRAm5IsdQf pic.twitter.com/Htsi3n2XxV

— James Seyffart (@JSeyff) October 13, 2023

If a spot Bitcoin ETF is accredited, crypto lending corporations reminiscent of Tokenet stand to achieve from the inflow of establishments seeking to borrow Bitcoin.

Runnels was beforehand the managing director at Cantor Fitzgerald, whereas the COO of Digital Prime Applied sciences, Bob Sherry was beforehand COO of Prime Companies at Cantor till 2018.

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