StoneX Digital, part of StoneX Group, is expanding its move into digital finance byintroducing a digital asset lending capability that gives institutional tradersnew ways to manage liquidity and exposure in crypto-focused portfolios. The new feature adds another layer to StoneX’s existingdigital brokerage and financing toolkit as traditional and digital marketscontinue to merge.Expanding Institutional Crypto ServicesThe lending feature positions StoneX Digital as a bridgebetween conventional financial systems and emerging crypto markets. The firmalready offers clients spot trading, exchange-traded funds, and futures linkedto digital assets, all within its established institutional framework.According to StoneX, the new lending product aims to meetgrowing demand from professional market participants looking for financingtools that align digital and traditional assets. The feature enables clients to obtain liquidity withoutliquidating their crypto holdings, supporting integrated trading and investmentstrategies.“Clients are seeking efficient ways to access liquiditywhile maintaining exposure to digital assets,” said Brian Mulcahy, CEO ofStoneX Digital. “This lending capability builds on StoneX’s existing brokerageand risk management infrastructure and supports clients integrating digitalasset financing into their broader portfolio strategies.”Bitcoin-Backed LoansThe company noted that Bitcoin will serve as the initialcollateral for the lending program, but plans are underway to add otherlarge-cap cryptocurrencies as market demand evolves. Each lending arrangementwill follow strict collateral management and risk control parameters to ensurestability.StoneX Digital secured a Crypto-Asset Service Provider license under the EU’s MiCA regime from the Central Bank of Ireland, clearing the way for the firm, which launched in June 2022, to offer digital asset execution and custody services across the European Union within the new regulatory framework.StoneX operates FOREX.com as part of its retail trading franchise, following its acquisition of GAIN Capital, the broker’s former parent. The group uses FOREX.com as one of its key brands for self-directed clients, offering leveraged forex and CFD trading under StoneX’s global regulatory and technology framework.This article was written by Jared Kirui at www.financemagnates.com.