Cantor Fitzgerald has launched a new cryptocurrency lending initiative worth $2 billion, issuing its first loans for the FalconX and Maple Finance projects. Both companies received funding secured by Bitcoin, indicating a recovery in the cryptocurrency lending market following the issues that arose from the collapse of Celsius and BlockFi.
This is reported by Finway
Funding Secured by Bitcoin
FalconX, in particular, secured a credit line of over $100 million, while Maple Finance announced the successful closure of its first tranche. According to Josh Barkhordar, Head of Sales in the U.S. at FalconX, “We are excited to announce our partnership with Cantor, a leading global investment bank. Together we have closed our first financial deal secured by Bitcoin – the first phase of a broader lending program planned to exceed $100 million.”
Strategic Initiatives and Interest in Digital Assets
Lending secured by Bitcoin is part of Cantor’s strategy to enter the digital asset market. Previously, the company collaborated with Tether and SoftBank to create the infrastructure company Twenty One Capital. These steps highlight the growing institutional interest in digital assets, according to analysts.
The program targets institutional investors who already own Bitcoin and offers liquidity without the need to sell them. Companies Anchorage Digital and Copper serve as custodians and collateral managers in this project, ensuring its reliability.
It is worth noting that Blockstream and Xapo have also intensified their efforts in cryptocurrency lending, indicating growth in this sector following the downturn in 2022. According to Galaxy Research, the cryptocurrency lending market doubled in 2024, reaching $36.5 billion in the last quarter.
Cantor Fitzgerald plans to officially launch its Bitcoin lending business in July 2024, aiming to provide funding for companies with Bitcoin on their balance sheets. Analysts believe that cryptocurrency lending is regaining its position as an element of alternative finance, mirroring the functions of the traditional financial sector.
“Cantor Fitzgerald’s CEO Brandon Lutnick stated that he personally verified Tether’s reserves at the beginning of the partnership.”