Crypto-lending platform Tokenet prepares to launch amidst anticipation of surge in institutional clients, driven by the projected approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.

The platform is designed to facilitate the borrowing and lending of digital assets, managing collateral positions, and mitigating risks effectively.

Tokenet is the creation of former executives from financial services firm, Cantor Fitzgerald, who have since joined a new brokerage firm called Digital Prime Technologies.

Its unveiling coincides with a growing interest in crypto lending, particularly after the collapse of lending entities such as Voyager Digital, Celsius Network, and BlockFi.

Elliot Han, leading Cantor Fitzgerald's crypto, blockchain, and digital assets investment banking, mentioned to CNBC in May that individuals still engaged in crypto are beginning to explore its diverse applications.

He highlighted the industry's increasing maturity, accrediting this to the gradual implementation of regulations and the growing involvement of institutional players.

In the wake of the dramatic collapse of Celsius, a leading figure in the crypto lending sector, in July 2022, the broader cryptocurrency market has been wary of crypto lending platforms.

Celsius Network Ltd. took the drastic step of filing for Chapter 11 bankruptcy after falling as a casualty in the $2 trillion market crash that had already claimed some of the industry's most prominent players.

The collapse also left hundreds of thousands of individual investors facing substantial losses.

The downturn was initially triggered by the depegging of the Terra UST stablecoin from the USD in May, which sent shockwaves throughout the cryptocurrency ecosystem.