The Future of Institutional Fixed-Rate Digital Asset Lending and Borrowing

As institutional adoption of digital assets accelerates, the demand for reliable, predictable, and efficient lending and borrowing solutions has never been greater.

Term Structure Institutional (TSI) is a new fixed-rate borrowing and lending platform that has been launched to provide institutions with seamless access to fixed-income opportunities in the digital asset markets. The platform is powered by Fireblocks’ Multi-Party Computation (MPC) technology and is also an advanced Electronic Communication Network (ECN).

Institutions are increasingly looking for reliable and predictable ways to engage in digital asset lending and borrowing activities. However, several challenges hinder this engagement. Existing lending and borrowing platforms can be risky due to volatile market conditions and may lack the advanced risk management capabilities that institutions require. Moreover, the market lacks standardization, making it difficult to compare offerings and achieve optimal terms. Additionally, institutions prefer predictable, fixed-rate and fixed-term loan products, contrasting with the variable-rate and demand-driven nature of existing platforms. Finally, the liquidation procedures in case of default are often opaque and cumbersome, posing difficulties for institutions to exit positions smoothly and efficiently.

TSI directly addresses these pain points by offering a platform that combines the robust security of Fireblocks’ MPC technology with the efficiency and standardization of an ECN. The platform provides a seamless and compliant framework for institutions to engage in fixed-rate borrowing and lending activities with complete transparency and optimal risk mitigation.

TSI’s integration with Fireblocks’ MPC technology ensures that institutional digital assets remain protected at all times. By eliminating single points of failure and operating in a multi-signature framework, TSI minimizes risk and optimizes compliance.

TSI enables institutions to lock in stable interest rates and predefined loan durations, providing much-needed certainty for long-term financial strategies. Whether institutions are seeking to deploy idle reserves or generate yield on existing assets, TSI offers a diverse range of borrowing and lending opportunities across various digital assets and maturities.

TSI's ECN-powered platform revolutionizes price discovery and liquidity aggregation, bringing the standardization and efficiency of traditional finance into the digital asset ecosystem. By aggregating liquidity from various DeFi protocols and market makers, TSI provides institutions with an unmatched breadth of options and competitive pricing for both borrowing and lending needs.

To mitigate default risks and foster market stability, TSI requires borrowers to provide collateral in excess of the loan value. This over-collateralization serves as a crucial safeguard for lenders, ensuring the safety of their principal investments. Moreover, TSI's collateral liquidation procedures are structured and transparent, enabling the orderly close-out of positions in case of default. This minimizes losses for all parties involved and maintains the overall stability of the lending market.

TSI is setting a new standard for institutional finance in the digital asset space by combining enhanced security and fixed-rate certainty to provide a seamless and compliant experience for institutions. As institutions continue to adopt digital assets at an accelerated pace, TSI is uniquely positioned to provide the essential financing solutions that will shape the future of this evolving industry.