FRNT is an institutional capital markets and advisory platform focused on digital assets such as Bitcoin.
Based in Toronto, the technology-forward and compliant operation aims to bridge the worlds of traditional and web-based finance by partnering with both financial institutions and crypto-native firms across synergistic business lines including trading services, institutional derivative products, merchant banking, and consulting.
This week, the Canadian fintech announced its latest partnership: A strategic collaboration with digital asset custodian BitGo.
The result of the partnership is a new institutional-only lending platform from FRNT that offers “significant advantages to both lenders and borrowers over existing industry structures,” according to a statement from the firm.
“Our platform is designed to provide a seamless and secure lending experience for institutional clients,” says Giles Colwell, who functions as head of capital markets in North America for FRNT.
FRNT’s new lending interface mitigates counterparty risk through a tri-party structure by using BitGo as a bankruptcy remote third-party custodian, and leverages digital tools to set automated tasks such as margin calls.
“With 24/7 monitoring, automated margin calls, and a robust liquidation management process, lenders can confidently lend against BTC and ETH without the need to handle the physical assets,” says Colwell.
The platform aims to address a growing demand for digital asset-backed lending solutions. The availability of a secure and efficient platform presents an opportunity for both lenders seeking yield and borrowers looking to leverage digital assets without selling, according to Stéphane Ouellette, cofounder and chief executive officer of FRNT.
“For lenders, FRNT’s platform provides a unique opportunity to diversify lending book exposure to a less correlated asset class,” says the CEO. “For borrowers, FRNT’s platform offers a secure and transparent means to access dollar liquidity while maintaining long exposure to the collateralized asset.”
“We are excited to partner with FRNT and leverage our extensive collateral management capabilities to assist them in growing their lending platform,” stated Adam Scorn, Head of Prime Brokerage and U.S. Institutional Sales for BitGo.
“Crypto-backed loans are a key component in institutional integration into the digital asset ecosystem,” added Ouellette. “We’re further extremely excited to be announcing this launch with BitGo, one of the longest serving and trusted names in digital asset custody.”
FRNT was founded in 2018 and trades publicly on the TSX-V.
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