FRNT Financial Inc. announce its partnership with BitGo and the launch of its new institutional-only lending platform, aiding the origination and maintenance of BTC and ETH-backed loans. The platform offers significant advantages to both lenders and borrowers over existing industry structures. FRNT's new lending interface leverages a tri-party structure to mitigate counterparty risk by using a bankruptcy remote third-party custodian, BitGo, ensuring that the collateral is securely held in cold storage and cannot be rehypothecated.

FRNT?s solution minimizes the lender?s required engagement while maintaining the benefits and safety of a tri-party structure. Unlike traditional tri-party lending arrangements that demand a high degree of involvement from the lender, FRNT?s platform requires the lender only to provide the balance sheet, with FRNT?s technology handling all loan monitoring. This streamlined approach offers significant advantages, providing lenders with peace of mind and returns, while borrowers can access liquidity without selling their BTC or ETH, maintaining potential upside in their investments.

Key features of the new platform include: Overcollateralization: Loans are typically structured with a starting Loan-to-Value (LTV) ratio of 50%-70%. No Rehypothecation: Collateral is held with BitGo, a qualified custodian, and remains in bankruptcy-remote cold storage, providing an additional layer of security. Automated Management: The platform offers 24/7/365 trading capabilities, deep liquidity, and real-time monitoring of collateral health, margin levels, and liquidation points.

Auditability: Utilizing the public BTC and ETH blockchains ensures all transactions are transparent and can be audited in real-time, enhancing trust and security. The platform aims to address the growing demand for digital asset-backed lending solutions. As the market for BTC and ETH continues to mature, the availability of a secure and efficient lending platform presents a significant opportunity for both lenders seeking yield and borrowers looking to leverage their digital assets without selling them.