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

A caller crypto-lending level dubbed Tokenet says it volition work what it expects to beryllium an influx of organization clients pursuing the imaginable United States support of spot Bitcoin (BTC) speech traded money (ETF). 

The level was launched by a squad of executives who antecedently headed fiscal services steadfast Cantor Fitzgerald who since joined a caller brokerage steadfast called Digital Prime Technologies.

In a Nov. 7 statement, Tokenet said it volition let firms to get and lend integer assets portion managing collateral positions. The level besides offers hazard absorption tools which let institutions to mitigate counterparty risks arsenic they would successful accepted finance.

Digital Prime Technologies’ Tokenet level is already backed by a fig of crypto firms including Hidden Road Partners, Xapo Bank, EDX Clearing and DV Chain.

"Given the existent markets and regulatory headwinds, Tokenet's motorboat is an important and breathtaking measurement towards establishing spot and transparency successful integer plus lending,” said James Runnels, Digital Prime Technologies co-founder and CEO.

Tokenet joins a increasing roster of companies seeking to clasp crypto lending pursuing the illness of lenders including Voyager Digital, Celsius Network and BlockFi.

In a bid to bolster declining revenues, crypto speech giants including Coinbase and Binance person leaned heavily connected lending offerings each the portion assuring investors that they’ve learned from the mistakes of the crypto lending catastrophe of 2022 which bankrupted a fig of high-profile firms.

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

Tokenet’s motorboat is buoyed by the wider crypto marketplace enthusiasm for an impending support of a spot Bitcoin ETF. While an support is not guaranteed, Bloomberg ETF analysts person pegged the likelihood of an support astatine 90% earlier January adjacent year.

If a spot Bitcoin ETF is approved, crypto lending firms specified arsenic Tokenet basal to summation from the influx of institutions looking to get Bitcoin.

Runnels was antecedently the managing manager astatine Cantor Fitzgerald, portion the COO of Digital Prime Technologies, Bob Sherry was antecedently COO of Prime Services astatine Cantor until 2018.

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