Wall Street Financial firm Cantor Fitzgerald has closed its first bitcoin lending deal after about a year after announcing its crypto lending services.
According In Bloomberg’s report on 27 May, the canter provided a bitcoin-supported loan to Falcon and Maple Finance. Digital asset broker Falconx said it achieved more than $ 100 million as part of the “comprehensive credit framework”, while Maple Finance allegedly shut down the first installment of an agreement with the canter.
This allows service companies to keep bitcoins and use cryptocurrency as collateral, providing a way to unlock liquidity without selling its BTC holdings. Cantor announced his bitcoin financing business in July 2024 with an $ 2 billion initial capital, demanding institutional investors to avail their bitcoin. At that time, the company said that Encourage would serve as patrons and collateral managers in the digital and copper enterprise.
Credit markets are a fundamental part of the financial system, allowing capital borrowers to flow and support economic activities in areas. Their central role also means that they can contribute to the financial crisis when the risks are misbehaved. Reflection of some traditional finance functions, the Crypto credit markets are working with low regulatory inspection.
Digital asset crisis of 2022
This was dynamic clear during the 2022 crisis in the digital asset sector. Celsius Network, once a major crypto lending platform, collapsed after being engaged in risky financial practices and faced allegations of fraud. Similarly, Blockfi filed for chapter 11 bankruptcy in November 2022, which was after significant risk for the collapse of Crypto Exchange FTX.
According For a report by Galaxy, the total crypto lending market, including the Crypto-supported collateral debt positions (CDP), which with $ 36.5 billion in the last quarter of 2024, with $ 36.5 billion, with $ 36.5 billion, in 2021, in 2021, the fall of its all-time high $ 64.4 billion to a 43% from a 43%, which marks a wide-fingering of a 43%. Q4 2024 increased by $ 19.1 billion, increased by 959% in two years.
Cantor’s crypto arm
The canter is one of the most traditional financial services companies in the United States. Established in 1945, this investment provides several services for institutions including banking, brokerage, equity and fixed-incommunication and trading. The company claims to serve more than 5,000 customers in 20 countries.
The company’s CEO, Howard Lutnik, has been a lawyer to classify bitcoin as a commodity, which is similar to gold and oil, and has called for a clear regulatory structure for cryptocurrency in the US. Lutnik was also appointed in 2024 for the co-head of US President Donald Trump’s infection team.
The canter is also one of the managers of Tether’s US Treasury Securities Portfolio, which supports its stabechoin. In early 2024, the firm won a 5% stake in Tether.
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