Zodia Custody, a digital asset management company, has integrated Tokenet to launch Collarate Protect.
Tokenet is an institutional digital asset lending platform built by Digital Prime Technologies.
This new service will give financial institutions access to the ability to lend and borrow digital assets on Tokenet while keeping collateral protected in Zodia Custody cold storage wallets.
Counterparties will be able to manage assets associated with their loans through a segregated on-chain collateral account, overlaid with Zodia's bankruptcy remote structure.
The interests of both the borrower and the secured party will be protected through the establishment of collateral schedules and continuous monitoring through Tokennet, the company said.
Additional security features include on-chain segregated collateral accounts, liquidation risk management, and robust wallet delegation controls to minimize counterparty risk.
“This combination opens the door wide open for financial institutions to enter the digital lending market,” said James Harris, Zodia Custody's chief commercial officer.
“For the first time, we can do so within the same rigorous security and compliance measures we are accustomed to in traditional finance. We have built frictionless enhancements for collateral protection. ”
James Runnels, CEO and co-founder of Digital Prime Technologies, added: “We continue our mission to deliver products that provide transparency in the financing of digital assets.”