TLDR
- EquiLend makes a minority investment in Digital Prime to integrate traditional and digital assets.
- The collaboration will focus on Tokenet, an institutional lending network using stablecoin collateral.
- The financial giant maintains its compliance plans despite the SEC’s deadline extension to 2028.
EquiLend announced Wednesday that it has made a strategic minority investment in Digital Prime Technologies. This alliance seeks to transform securities lending infrastructure, allowing a $40 trillion asset pool to seamlessly transition toward digital markets and tokenized assets transparently.
They indicated that the primary focus will be on Tokenet, Digital Prime’s institutional lending network. In addition to supporting multi-custodian lifecycle management, this platform will introduce innovative features such as the use of regulated stablecoins as collateral.
EquiLend CEO Rich Grossi stated that the adoption of digital assets requires institutions to have the same governance and automation they already enjoy in traditional asset classes.
Workflow Modernization and Regulatory Compliance
The technological integration will allow the aggregated activity of these new markets to be routed through EquiLend’s NGT and 1Source platforms. Through this, the company expects to increase operational efficiency by reducing settlement cycles and deeply modernizing post-trade processes.
The goal of the EquiLend and Digital Prime alliance is to offer a unified experience where the execution and reporting of virtual assets are as robust as in the conventional stock market.
Furthermore, this union occurs within a shifting regulatory landscape. Recently, the U.S. Securities and Exchange Commission (SEC) extended compliance deadlines for securities lending and short position reporting until September 2028.
Despite this temporary reprieve granted by the regulator, the partnership between EquiLend and Digital Prime reaffirms its commitment to implementing reporting solutions ahead of schedule.
In this context, Digital Prime co-founder James Runnels highlighted that EquiLend’s backing will allow them to scale their crypto financing services under a strict compliance framework.
For market participants, this synergy represents a definitive step toward the convergence of institutional capital and blockchain infrastructure, ensuring that the transition to digital assets is conducted under managed risk standards.
