Former Cantor Execs Launch Bitcoin ETF Lending Platform

by | Feb 22, 2024 | Bitcoin News | 0 comments

Latest News

Latest News

View more

The Genesis of Digital Prime Technologies’ Tokenet

A team of accomplished former Cantor Fitzgerald executives has unveiled a pioneering crypto lending platform, Digital Prime Technologies’ Tokenet, with the foresight of catering to operators of spot Bitcoin exchange-traded funds (ETFs) once they obtain the green light from US regulatory authorities. This groundbreaking initiative signifies a significant step forward in the ever-evolving crypto lending landscape.

Tokenet Facilitates Digital Asset Lending

Tokenet has already made a noteworthy entrance onto the crypto lending scene, enabling clients, including the prominent Xapo Bank, to lend out their digital assets to an array of institutional players, such as EDX Clearing and the global institutional credit network, Hidden Road Partners. The company, headquartered in Jersey City, New Jersey, announced this strategic move on Tuesday. Notably, Tokenet offers a suite of risk-management tools and incorporates a chat functionality that empowers users to efficiently administer their loans.

Read Also: India G20 Summit: Prime Minister Modi Calls for Global Crypto Regulation Framework

 Filling the Gap in the Crypto Lending Industry

The genesis of Tokenet comes in the wake of the crypto lending industry’s tumultuous period, characterized by the collapse of several key players, including Genesis, Celsius, and BlockFi, in the previous year. This vacuum left market participants with a limited set of options and contributed to a substantial reduction in trading volumes that continued into the year 2023. Tokenet’s emergence aims to bridge this gap and revive the sector.

Read Also:  Bitcoin Below $80,000 as Fed Pause Fails to Revive Crypto

A Synchronized Launch with Prospective Bitcoin ETF Approval

The timing of Tokenet’s launch coincides with a rising tide of optimism regarding the potential approval of Bitcoin ETFs directly holding the cryptocurrency in the United States. Should this regulatory milestone be achieved, Digital Prime Technologies anticipates a surge in demand from ETF issuers seeking to borrow Bitcoin, potentially rejuvenating the crypto-lending industry.

Read Also: Chinese Court Bans Cryptocurrency Lending

A “Rebirth” of Crypto Lending

In light of these developments, James Runnels, the CEO of Digital Prime Technologies, remarked that the situation is akin to a “rebirth of crypto lending.” He emphasized that if authorized participants involved in creating inventory for the ETF suddenly encounter a surge in Bitcoin’s price, they may opt to borrow the cryptocurrency instead, with the intent of purchasing it later at a lower price, thereby maximizing their gains.

The Expertise Behind Digital Prime Technologies

The team spearheading Digital Prime Technologies’ Tokenet boasts a wealth of experience garnered during their tenure at Cantor Fitzgerald. For instance, James Runnels, the CEO, previously held the position of Managing Director at Cantor Fitzgerald. Bob Sherry, the Chief Operating Officer of Digital Prime, formerly served as the COO for Prime Services at Cantor until 2018. Glen Garofalo, who now heads margin and risk solutions at Digital Prime, held the roles of managing director of prime services and head of margin during his time at Cantor, as indicated on his LinkedIn profile.

Read Also: Bahamian PM Seeks NFT Guidance for Son from SBF

Regulatory Standing and Funding

In terms of regulatory standing, Digital Prime’s subsidiary, DLCC Prime, successfully secured membership with the Financial Industry Regulatory Authority last year, granting it the capacity to operate as a broker-dealer registered with the Securities and Exchange Commission. This accomplishment underscores the company’s commitment to adhering to industry standards and regulatory requirements. Moreover, Digital Prime received its initial funding from a distinguished group of investors, including TD Cowen Inc., reinforcing the confidence and support for this innovative venture.

Read Also:  AI found a way to crash bitcoin nodes on Windows and Macs. It's now public

For the Latest Crypto News follow the Coinography and Subscribe our YouTube channel or follow us on social media platforms like Twitter, Facebook, Instagram and LinkedIn.

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted

Web Stories

Independent operators seek pause on Solana validator rules

Independent operators seek a pause under Solana validator rules that cap delegation at 100 participants and limit membership to a maximum 12-month term.

Read Also:  Bitcoin Below $80,000 as Fed Pause Fails to Revive Crypto

Solana dApp revenue leads blockchain rankings for seventh straight week

Solana dApp revenue reached nearly $34 million last week, leading Layer 1 and Layer 2 chains for a seventh straight week, Crypto Briefing reported.

Read Also:  Bitcoin Below $80,000 as Fed Pause Fails to Revive Crypto

EIP-8037 gas rules prompt Ethereum apps to revisit billing

EIP-8037 gas rules could change Ethereum app billing as developers delay a Glamsterdam testnet step over gas-accounting risks, KuCoin reports.

Read Also:  AI found a way to crash bitcoin nodes on Windows and Macs. It's now public

Glamsterdam gas fees raise billing concerns as developers seek fixes

Glamsterdam gas fees could disrupt dApp billing and older contracts. Developers are weighing fixes after a test delay and security warnings.

Read Also:  AI found a way to crash bitcoin nodes on Windows and Macs. It's now public

Nym mixnet SDK brings network privacy tools to wallets and dapps

Nym mixnet SDK brings five-hop browser traffic routing to wallets and dapps. It was unveiled at Devcon 8 and requires no separate VPN installation.

Read Also:  US Bitcoin ETFs Attract $137M While Ether Funds Extend Outflows

Anthropic dShares: Source Facts Needed

No source facts or quotations were supplied for Anthropic dShares; a reported article cannot be expanded without adding unsupported information.

Read Also:  Bitcoin Below $80,000 as Fed Pause Fails to Revive Crypto

Ethereum falls 6% as Glamsterdam upgrade delay coincides with ETF outflows

Glamsterdam upgrade delay coincides with a 6% Ethereum price drop, over $210 million in liquidations and nearly $100 million in ETF outflows.

Read Also:  US Bitcoin ETFs Attract $137M While Ether Funds Extend Outflows

ETH price forecast gives year-end range, not Nov. 7 2 a.m. price

Cryptopolitan’s ETH price forecast gives a 2026 year-end range, but its estimates do not establish the price at 2 a.m. EST on November 7, 2026.

Read Also:  AI found a way to crash bitcoin nodes on Windows and Macs. It's now public

EIP-8037 gas rules prompt review of Ethereum app billing

EIP-8037 gas rules could alter Ethereum app billing and wallet authorizations, as developers assess proposed changes and seek project reports.

Read Also:  Bitcoin Below $80,000 as Fed Pause Fails to Revive Crypto

Latest News