Zodia Custody, a digital asset custodian, has partnered with Tokenet to introduce Collateral Protect, a new service for institutions. Tokenet is an institutional digital asset lending platform developed by Digital Prime Technologies. Through this collaboration, institutions can now access borrowing and lending facilities for digital assets on Tokenet, while ensuring that their collateral is securely stored in Zodia Custody’s cold-storage wallets.
The service allows counterparties to manage assets connected to a loan via a segregated, on-chain collateral account that is backed by Zodia’s bankruptcy remote structure. This setup ensures that both borrowers and secured parties’ interests are safeguarded through collateral schedule setup and continuous monitoring through Tokenet. Additionally, the integration offers increased security features such as minimized counterparty risk, liquidation risk management, and robust wallet delegation control.
James Harris, the chief commercial officer of Zodia Custody, believes that this integration opens doors for institutions to enter the digital borrowing and lending market with confidence. He emphasizes that institutions can now participate in these activities while adhering to strict security and compliance measures familiar to them from the traditional finance sector. These enhancements provide a seamless experience for collateral protection.
James Runnels, the CEO and co-founder of Digital Prime Technologies, expresses their commitment to delivering a product that promotes transparency in the lending of digital assets. The collaboration between Zodia Custody and Tokenet aims to provide institutions with a secure and reliable platform for engaging in digital asset borrowing and lending, while ensuring that their collateral remains safe and protected at all times.