Wall Street financial firm Cantor Fitzgerald has completed its first Bitcoin loan transaction nearly a year after announcing its crypto lending service.
According to a Bloomberg report on May 27, Cantor Fitzgerald provided Bitcoin-backed loans to FalconX and Maple Finance. Digital asset broker FalconX stated that it secured over $100 million in financing as part of a "broader credit framework," while Maple Finance reportedly completed the first batch of transactions under its agreement with Cantor Fitzgerald.
The service allows companies holding Bitcoin to borrow funds using cryptocurrency as collateral, providing a way to unlock liquidity without selling their BTC holdings. Cantor Fitzgerald announced its Bitcoin financing business in July 2024, with initial capital of $2 billion, targeting institutional investors looking to leverage Bitcoin. At that time, the company indicated that Anchorage Digital and Copper would serve as custodians and collateral managers for the project.
The credit market is a fundamental component of the financial system, allowing capital to flow between borrowers and lenders and supporting economic activity across various industries. Its core position also means that when risk management is inadequate, it can lead to financial distress. While the crypto lending market shares some functions with traditional finance, it operates under less regulatory oversight.
This dynamic was particularly evident during the crisis in the digital asset industry in 2022. Celsius Network, once a leading crypto lending platform, collapsed after engaging in high-risk financial practices and facing fraud allegations. Similarly, BlockFi filed for Chapter 11 bankruptcy protection in November 2022 due to significant exposure to the collapse of the crypto exchange FTX.
According to a report by Galaxy, as of the last quarter of 2024, the total size of the entire crypto lending market, including crypto collateralized debt positions (CDPs) related to stablecoins, was $36.5 billion, down 43% from the historical peak of $64.4 billion in 2021. Despite the overall market contraction, on-chain lending platforms saw a significant rebound, with open lending positions surging to $19.1 billion in the fourth quarter of 2024, a 959% increase from two years ago.
Cantor Fitzgerald is one of the most traditional financial services companies in the United States. Founded in 1945, the company provides a range of services to institutions, including investment banking, brokerage, and sales and trading of equities and fixed income. The company claims to serve over 5,000 clients in 20 countries.
The company's CEO, Howard Lutnick, has advocated for classifying Bitcoin as a commodity, similar to gold and oil, and has called for clearer regulatory frameworks for cryptocurrencies in the U.S. Lutnick was also appointed as co-chair of former President Donald Trump's transition team in 2024.
Cantor Fitzgerald is also one of the managers of the U.S. Treasury securities portfolio backed by the Tether stablecoin. At the beginning of 2024, the company acquired a 5% stake in Tether.
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Original: “Report: Maple Finance and FalconX Secure Bitcoin (BTC) Backed Loans from Cantor Fitzgerald”
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