A New Crypto-Lending Platform Emerges
Tokenet, a new crypto-lending platform, is set to cater to the anticipated surge of institutional clients following the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. The platform is launched by former Cantor Fitzgerald executives who have joined Digital Prime Technologies.
In an announcement, Tokenet revealed that it will facilitate borrowing and lending of digital assets for institutions, along with collateral management and risk mitigation tools. Notably, the platform has already garnered support from various crypto firms such as Hidden Road Partners, Xapo Bank, EDX Clearing, and DV Chain.
James Runnels, CEO of Digital Prime Technologies, expressed optimism about Tokenet’s launch, emphasizing its significance in establishing trust and transparency in digital asset lending.
Rising Interest in Crypto Lending
Tokenet’s debut comes at a time when several companies are venturing into crypto lending following the collapse of prominent lenders like Voyager Digital, Celsius Network, and BlockFi. Major crypto exchanges such as Coinbase and Binance have also emphasized lending services to address declining revenues and regain investor confidence after the 2022 crypto lending crisis.
Moreover, Tokenet’s launch is aligned with the overall market anticipation for the approval of a spot Bitcoin ETF. Bloomberg ETF analysts have estimated a high likelihood of approval before January next year.
Hot Take: Potential Impact of a Spot Bitcoin ETF
If a spot Bitcoin ETF is approved, crypto lending platforms like Tokenet are poised to benefit significantly from the increased demand for borrowing Bitcoin among institutional investors. This development aligns with the broader trend of financial institutions embracing digital assets and seeking exposure to the crypto market through various avenues such as lending platforms.
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