A new player has entered the field left deserted after the crash of crypto lenders such as BlockFi, Celsius and Genesis, with Digital Prime Technologies unveiling an institutional digital asset lending platform called Tokenet that will allow users to interact with trusted counterparties, post borrow needs and lending availability, and manage collateral.
"The platform also features loan lifecycle management tools with automated mark-to-markets, returns, recalls, and rerates, all managed through its 24/7 chat functionality," the company said in a statement.
Digital Prime co-founder and CEO James Runnels is a former Cantor Fitzgerald managing director and head of securities lending at tZero, a short-lived tokenization startup by Overstock.
"Given the current markets and regulatory headwinds, Tokenet's launch is an important and exciting step towards establishing trust and transparency in digital asset lending. This platform redefines digital asset lending and embraces the regulatory safeguards of traditional finance," Runnels said.
The Digital Prime team includes other alumni of Cantor Fizgerald, as well as a Bank of America veteran Courtney Campbell.
Tokenet will allow institutional crypto traders to borrow and lend digital assets using Anchorage Digital as custodian.
"Client digital assets are held in segregated, on-chain vaults at Anchorage Digital Bank, with the highest security protocols in the industry," Digital Prime said.
"Regulated crypto infrastructure is no longer optional — it is a prerequisite for long-term safety and viability in today's market environment," Anchorage Digital co-founder and president Diogo Monica said in the statement.
Early clients include the crypto custodian Xapo Bank, prime brokerage Hidden Road, institutional exchange EDX and market maker DV Chain.
"The Tokenet platform provides much-needed transparency and loan life cycle tools to the institutional lending space, setting it apart from what is currently available in the market," Xapo Bank CEO Seamus Rocca said.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.