Digital asset custodian Zodia Custody has announced the integration of Tokenet to launch Collateral Protect, a new service aimed at institutional investors. The new solution aims to provide institutional investors with digital borrowing and lending services under a security framework that resembles practices in traditional finance, reports Asset Servicing Times.
The Collateral Protect service allows institutions to access facilities for borrowing and lending of digital assets on Tokenet, while their collateral remains secured in Zodia Custody’s cold-storage wallets. It also offers a segregated, on-chain collateral account overlayed with Zodia’s bankruptcy remote structure, providing enhanced security measures for both borrowers and secured parties.
Other security features of the service include collateral schedule setup, ongoing monitoring via Tokenet, liquidation risk management, and robust wallet delegation control.
Tokenet is a digital asset lending platform developed by Digital Prime Technologies.