Cantor Fitzgerald has expanded its activities in the cryptocurrency lending sector by launching a new financing program with a volume of $2 billion. The first recipients of loans were FalconX and Maple Finance, which secured funds against Bitcoin collateral. FalconX opened a credit line of over $100 million, while Maple Finance announced the successful completion of its first loan tranche.
This is reported by Business • Media
Expansion of the Cryptocurrency Lending Market and Collaboration with Industry Leaders
Cantor Fitzgerald’s strategy for entering the digital asset market includes partnerships with companies such as Tether and SoftBank. In early 2024, the bank initiated the creation of the infrastructure project Twenty One Capital alongside these industry players. The lending program is aimed at institutional investors holding Bitcoin, allowing them to obtain liquidity without the need to sell their assets. The reliability of custody and collateral management is ensured by Anchorage Digital and Copper, who act as custodians in the project.
Cantor’s service has quickly become one of the largest platforms for Bitcoin-backed lending in the U.S., reflecting the high demand from companies holding digital assets on their balance sheets.
Industry Recovery After the Crisis and Lending Prospects
Following the bankruptcies of Celsius and BlockFi in 2022, the cryptocurrency lending sector experienced a significant decline. However, by 2024, there has been a rapid market growth — according to Galaxy Research, the global cryptocurrency lending volume reached $36.5 billion in the last quarter, more than double the figures from the previous year. The activation of funds such as Blockstream and Xapo further confirms the trend of industry recovery.
“Cryptocurrency lending is regaining its position as an element of alternative finance. Despite the lack of strict regulation, it mirrors the functions of the traditional sector,” note analysts at Galaxy Research.
In July 2024, Cantor Fitzgerald officially announced the launch of its Bitcoin lending business, emphasizing that the initial capital for the program will be $2 billion. The main goal is to provide financial support to companies that hold Bitcoin on their balance sheets.
Previously, Cantor Fitzgerald’s CEO Brandon Luttner emphasized that he personally verified Tether’s reserves during the partnership formation stage with the company, which enhanced trust in new projects in the digital asset space.