A Wall Street Titan Reignites Crypto Lending
Cantor Fitzgerald has officially launched a $2 billion Bitcoin-backed lending unit, taking aim at a once-toxic sector that’s finally bouncing back. The firm kickstarted operations by financing FalconX and Maple Finance, signaling that institutional lending in crypto is no longer taboo. FalconX secured a Bitcoin-backed credit line with plans to draw over $100 million in multiple tranches.
Meanwhile, Maple Finance confirmed the first phase of its own deal with Cantor had closed successfully. This is Cantor’s biggest leap yet into digital asset finance, and it comes at a time when crypto-backed lending is staging a comeback—despite being nearly wiped out by the 2022 collapses of Celsius, BlockFi, and others.
A Market on the Mend After Major Wreckage
After hitting rock bottom in 2023, the crypto lending market doubled in size by the end of 2024, reaching $36.5 billion, per Galaxy Research. While still well below the 2021 peak of $64.4 billion, the recovery is notable—and institutions are starting to circle.
Cantor’s aggressive entrance is a vote of confidence, especially after many traditional firms backed off due to solvency risks in the wake of high-profile bankruptcies.
Other players are reviving the space too:
- Blockstream raised millions for lending expansion.
- Xapo Bank now offers BTC-backed loans up to $1M.
- Tether and SoftBank joined Cantor to launch Twenty One Capital, aimed at accumulating Bitcoin.
The mood? Still cautious—but clearly more optimistic.
Betting on Institutional Bitcoin Leverage
Cantor’s new division, announced in July 2024, is tailored for institutional BTC holders seeking leverage without liquidating assets. It’s part of a broader play to plug gaps left by failed crypto lenders while sidestepping retail exposure.
The strategy is clear: Offer liquidity to major players who want to use Bitcoin as collateral—under tighter controls and with institutional-grade risk management.
Interestingly, Howard Lutnick’s exit from Cantor in February to become U.S. Secretary of Commerce hasn’t derailed any of these plans. The firm continues its crypto charge—unshaken and all-in.
A New Era for Crypto Credit?
With Bitcoin ETFs booming, corporates stacking BTC, and regulated lending returning, this move by Cantor signals the beginning of a new phase: professionalized crypto lending with Wall Street muscle. The $2 billion fund is more than a bet on Bitcoin. It’s a declaration: crypto credit is back—and this time, it’s wearing a suit.
