Through Collateral Protect, institutions can now access best-in-class collateral protection services via Tokenet on Zodia Gateway, combining programmatic loan management capability with custody and administration of assets
The new service enables institutions to confidently access facilities for borrowing and lending of digital assets on Tokenet, while their collateral remains secured in Zodia Custody cold-storage wallets.
Following traditional financial standards for best practice, Collateral Protect provides institutions with secure and seamless access to digital asset borrowing and lending markets through the Tokenet integration. The partnership creates an industry first in allowing counterparties to manage assets tied to a loan via a segregated, on-chain collateral account that is overlaid with Zodia’s bankruptcy remote structure. Institutions will also benefit from collateral schedule setup and ongoing monitoring through Tokenet, and Zodia’s robust wallet delegation control to protect both the borrower and secured party interests.
The integration marks a step change for the digital asset borrowing and lending space. The service is designed with an institutional-first approach, and delivers access to a bank-grade solution that safeguards digital assets throughout the lending lifecycle, while retaining access to real-time transactions from the security of cold storage — thereby unlocking the market for lenders and borrowers alike.
Institutions will also benefit from additional security features, such as minimised counterparty risk through on-chain segregated collateral accounts, liquidation risk management to help monitor all positions and ensure transparent collateral operations, and robust wallet delegation control, protecting both the borrower and the secured party interest as governed by Account Control Agreement requirements. Institutions will also enjoy added risk management assurances through Zodia Custody’s industry-leading dispute-handling wallet control structure.
“This integration throws the doors wide open for institutions to enter the digital borrowing and lending market,” says James Harris, Chief Commercial Officer, Zodia Custody. ”And for the first time, they can do so within the same rigorous security and compliance measures they’re used to from the traditional finance space. We’ve built frictionless capability enhancements for collateral protection.”
Collateral Protect is made possible through the integration with Tokenet, and is the most advanced integration that Tokenet has supported to date. As both Zodia Custody and Digital Prime Technologies are regulation-first businesses, this also ensures added security for financial institutions to participate in the market while operating within the most robust regulatory framework available today.
“As we continue our mission to deliver a product that helps provide transparency in the lending of Digital Assets, we are pleased to announce this partnership with Zodia Custody. We have been thoroughly impressed with their vision and commitment to their clients.” says James Runnels, CEO and Co-Founder of Digital Prime Technologies.
Collateral Protect represents the next category of offerings from Zodia Custody Gateway, the custodian’s marketplace that enables institutions to discover select, vetted partners and third-party services.
