TORONTO, Jan. 25, 2024 (GLOBE NEWSWIRE) -- FRNT Financial Inc. (TSXV:FRNT) (OTCQB:FRFLF) (FSE:XZ3) (“FRNT” or the “Company”) provides an update on the SEC’s approval of spot bitcoin ETFs. The decision signals a new era in the institutional adoption of cryptocurrency. The launch of these ETFs has led to major asset managers establishing basic infrastructure for managing products in the digital asset landscape and adjacent industries. With these key players embracing cryptocurrency, FRNT foresees a widespread initiation of a comprehensive crypto segment across the asset management sector.
For over 5 years FRNT has been building a service offering to provide introductory and ongoing support for institutional entrants to the digital asset market. These clients will need more partnered services, similar to other asset classes. FRNT anticipates client interest in new trade opportunities, borrowing/lending structures, derivatives, liquidity services, crypto partnerships, and crypto-related equity investments. These are operations FRNT has diversified itself in its capacity to support.
“There are only a limited number of firms that are well-positioned to facilitate the growing adoption of crypto by institutions,” said FRNT CEO and co-founder Stéphane Ouellette. “We have deep experience in both traditional finance and cryptocurrency. We’ve built a business and products meeting the high standards required by traditional money managers, especially in the novel cryptocurrency space.”
FRNT has four business lines under the umbrella of its Capital Markets Services: Deliverable Services, Treasury Management, OTC Derivatives, and Lending Origination. Each business line is poised to help institutions access crypto opportunities and complement the newly approved spot bitcoin ETF trading. “Exchange traded products are a monumental step in the accessibility of bitcoin, however, they will only be one part of a broader suite of tools for trading these assets,” explained FRNT’s Head of Trading Ray Ritchie. “FRNT offers regulated and compliant, USD-settled exposure to a variety of opportunities as clients grow their crypto offerings.”
In addition, business lines under FRNT’s Advisory Services will stand to benefit. The proliferation of bitcoin exposure among traditional finance will trigger demand for further understanding of the asset. The firm’s Consulting business line, a growing source of revenue for FRNT, will assist institutions in understanding, for example, factors such as ESG, custodian due diligence, or risk management.
Mr. Ouellette concludes that, “evolution of investment banking services is not unprecedented. When commodities ‘came to Wall Street’ specialist firms emerged, some were acquired and some continue to exist and matured their business over time. We believe FRNT finds itself in a similar dynamic except with an emerging crypto landscape that arguably offers even more complications for traditional players. After a multi-year bear market, we’re extremely excited to see these positive developments in the space and particularly for the new opportunities presented to our business as we enter 2024.”
About FRNT Financial Inc. FRNT is an institutional capital markets and advisory platform focused on digital assets. FRNT, through a technology-forward and compliant operation, aims to bridge the worlds of traditional and web-based finance. Partnering with both financial institutions and crypto native firms, FRNT operates distinct business lines under the umbrellas of Capital Markets Services and Advisory Services. Capital Markets Services consist of Deliverable Services, Treasury Management, OTC Derivatives, and Lending Origination. Advisory Services include Merchant Banking, Asset Management, Consulting and Distressed. Co-founded in 2018 by CEO Stéphane Ouellette, FRNT is a global firm headquartered in Toronto, Canada.
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