Wall Street Financial Firm Cantor Fitzgerald closed its first Bitcoin Lending Deal almost a year after announcing Crypto lending services.
According to In a May 27 Bloomberg report, Cantor provided loans supported by Bitcoin at Falconx and Maple Finance. Falconx, a digital asset broker, said it gained a facility that costs more than $ 100 million as part of a “wider credit framework,” while Maple Finance has been reported to have closed the first tranche of an agreement with Cantor.
The service allows companies holding Bitcoin to borrow funds and use cryptocurrency as collateral, providing a way to unlock liquidity without selling their BTC handles. Cantor Bitcoin financing its financing The business with an initial $ 2 billion capital in July 2024, targeting institution investors seeking to use their Bitcoin. At this time, the company said the anchorage digital and copper would serve as the careral and collateral managers in the adventure.
Credit markets are a major part of the financial system, allowing capital to flow between lenders and lenders and support economic activity in the sectors. Their main role also means that they can contribute to financial anxiety when risks are in charge. While reflecting some traditional finances, crypto credit markets operate with less regulatory administration.
Digital crisis in ownership of 2022
This dynamic was apparent during the 2022 crisis in the digital asset sector. The Celsius network, once the leading crypto lending platform, collapsed after engaging in dangerous financial skills and faced allegations of fraud. Similarly, Blockfi filed for chapter 11 losses in November 2022 following significant exposure to the collapse of the Crypto Exchange FTX.
According to In a report from Galaxy, the total crypto lending market, including crypto -supported collateralized debt positions (CDP) tied to Stablecoins, stood $ 36.5 billion in the last quarter of 2024, marked a 43% decline from all hours of $ 64.4 billion to 2021. Brethren of the broader shrinkage, on the lending platforms saw an experienced returning returning, with obligatory positions that pierce positions that are encouraging to withdraw. At $ 19.1 billion by Q4 2024, an increase of 959% in two years.
Cantor’s Crypto Arm
Cantor is one of the most traditional financial services companies in the United States. Established in 1945, it offers a range of services for institutions, including investment banking, brokerage, equity and fixed sales and trade income. The company says to deliver more than 5,000 clients to entire 20 countries.
The CEO of the company, Howard Lutnick, has become an advocate For the classification of Bitcoin as a commodity, similar to gold and oil, and call for clearer regulation frameworks for cryptocurrencies in the US. Lutnick too Assigned to co-lead The US president’s transfer team, Donald Trump in 2024.
Cantor is also one of Tether’s Treasury Securities Portfolio managers who support its stablecoin. In early 2024, the firm obtained a 5% stake in Tether.
