Today Zodia Custody announced the launch of its new digital asset lending and borrowing solution, Collateral Protect, through an integration with Tokenet. Zodia is backed by Standard Chartered’s SC Ventures, SBI and Northern Trust. Digital Prime Technologies launched Tokenet last November. Founded by an ex-Cantor Fitzgerald team, Tokenet provides an institutional lending and borrowing matchmaking platform. Clients at the launch included Citadel and Schwab-backed EDX Clearing, Xapo, and Hidden Road.
With the demise of the major crypto lenders Genesis, Celsius, and BlockFi, there’s a gap in the market for digital asset lending.
However, unlike these centralized lenders, Tokenet enables bilateral arrangements. Through the integration, Zodia’s Collateral Protect holds the collateral in segregated cold storage wallets. Nonetheless, the solution supports real time transactions. Additionally, Zodia Custody has a bankrupt remote structure, so the assets won’t form part of its bankruptcy estate in the unlikely event of its collapse.
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