Wall Street financial firm Cantor Fitzgerald completed its first Bitcoin loan transaction nearly a year after announcing its cryptocurrency lending service.
According to a Bloomberg report on May 27, Cantor provided Bitcoin collateral loans to FalconX and Maple Finance. FalconX stated that it secured over $100 million in credit lines, while Maple Finance completed its first agreements with Cantor.
This service allows companies holding Bitcoin to borrow and use cryptocurrency as collateral, thereby unlocking liquidity without selling their Bitcoin. Cantor announced its Bitcoin financing business, launched with $2 billion, aimed at institutional investors looking to leverage Bitcoin.
Digital Asset Crisis
This dynamic was particularly evident during the 2022 digital asset industry crisis. The once-leading crypto lending platform Celsius Network collapsed due to financial risk behavior and fraud allegations. Similarly, BlockFi filed for bankruptcy in November 2022 due to significant exposure to the crypto trading platform FTX.
According to a Galaxy report, the total cryptocurrency lending market in the last quarter of 2024 is $36.5 billion, a 43% decline from the historical high in 2021. Despite the overall contraction, on-chain lending platforms have shown significant recovery.
Cantor's Crypto Division
Cantor is one of the most traditional financial services companies in the U.S., providing services such as investment banking, brokerage, and sales and trading of equities and fixed income to institutions. CEO Howard Lutnick has been advocating for Bitcoin to be classified as a commodity like gold and oil, calling for clearer regulatory frameworks for cryptocurrencies in the U.S.
