Former Cantor Fitzgerald Executives Launch Tokenet Crypto Lending Platform
Digital Prime Technologies, led by former Cantor Fitzgerald executives, has unveiled Tokenet, a new crypto lending platform. The company aims to take advantage of the potential approval of Bitcoin exchange-traded funds (ETFs) in the United States. Tokenet already serves clients such as Xapo Bank and offers digital asset lending to market players like EDX Clearing and Hidden Road Partners. The platform prioritizes strong risk management and user communication, providing features like chat for loan handling to address current market needs.
This launch comes at a crucial time as the crypto lending sector faced a void following the decline of lenders like Genesis and Celsius last year. With indications pointing towards possible U.S. acceptance of direct Bitcoin ETFs, Digital Prime is betting on a resurgence in Bitcoin borrowing demand, particularly from ETF issuers.
The Rebirth of Crypto Lending
According to CEO James Runnels, this moment represents a “rebirth” for crypto lending. The potential rise in Bitcoin’s value may lead ETF creators to prefer borrowing BTC rather than purchasing it at high prices, essential for the smooth functioning of ETFs.
The company’s leadership, including COO Bob Sherry and head of risk solutions Glen Garofalo, brings extensive experience from their time at Cantor Fitzgerald. Digital Prime has also obtained necessary financial industry memberships and registrations, with seed funding from investors like TD Cowen Inc., positioning itself as a robust new player in the crypto lending space.
Hot Take: A New Era for Crypto Lending
Digital Prime Technologies’ launch of Tokenet signals a promising new era for the crypto lending market. With its focus on addressing current market needs and capitalizing on potential U.S. regulatory developments, the company is well-positioned to revitalize the sector and meet the growing demand for digital asset lending.
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