New Crypto-Lending Platform Tokenet Prepares for Influx of Institutional Clients

Platform Launched by Former Cantor Fitzgerald Executives

A new crypto-lending platform called Tokenet is gearing up to serve a wave of institutional clients following the potential approval of a spot Bitcoin exchange traded fund (ETF) in the United States. The platform was created by executives from financial services firm Cantor Fitzgerald, who have now joined brokerage firm Digital Prime Technologies.

Risk Management Tools and Collateral Management

Tokenet, in a statement on November 7, announced that it will enable firms to borrow and lend digital assets while managing collateral positions. The platform also offers risk management tools that allow institutions to mitigate counterparty risks, similar to traditional finance.

Backed by Crypto Firms

The Tokenet platform already has support from several crypto companies, including Hidden Road Partners, Xapo Bank, EDX Clearing, and DV Chain. James Runnels, co-founder and CEO of Digital Prime Technologies, expressed excitement about the launch, stating that Tokenet's establishment will help build trust and transparency in digital asset lending.

Joining the Crypto Lending Trend

Tokenet is joining a growing list of companies entering the crypto lending space, following the collapse of lenders like Voyager Digital, Celsius Network, and BlockFi. Major crypto exchanges such as Coinbase and Binance have also ventured into lending to boost declining revenues, assuring investors that they have learned from the mistakes of the 2022 crypto lending disaster.

Opportunity with Potential Bitcoin ETF Approval

Tokenet's launch comes at a time of growing 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 next year. If a spot Bitcoin ETF is approved, lending platforms like Tokenet could benefit from the increased demand for borrowing Bitcoin from institutional investors.

The Team Behind Tokenet

James Runnels, the co-founder and CEO of Digital Prime Technologies, previously served as the managing director at Cantor Fitzgerald. Bob Sherry, the COO of Digital Prime Technologies and Tokenet, was formerly the COO of Prime Services at Cantor until 2018.