Wall Street Enters Bitcoin Backed Lending: Cantor Fitzgerald Launches $2 Billion Program
One of Wall Street’s oldest and most respected investment banks, Cantor Fitzgerald, is deepening its engagement with Bitcoin by launching a substantial lending program secured by the cryptocurrency.
New $2 Billion Lending Facility
Cantor Fitzgerald has initiated a comprehensive $2 billion lending program underwritten by Bitcoin itself. Initial deals have reportedly been secured, with two prominent digital asset companies, FalconX and Maple Finance, becoming the program’s first borrowers.
Connecting Institutional Finance and Bitcoin
The move represents a significant step in integrating traditional finance with the digital asset sector. The program enables institutional investors, hedge funds, and asset managers holding Bitcoin to borrow capital using the cryptocurrency as collateral.
Institutions holding bitcoin are looking to broaden their access to diverse funding sources. And we are excited to support their liquidity needs to help them drive long term growth and success.
said Christian Wall, Cantor Fitzgerald’s co-CEO and global head of fixed income.
A Game Changer for Bitcoin Holders
This initiative is a crucial development for institutions holding significant Bitcoin positions. Traditionally, accessing liquidity required selling the underlying asset, risking market impact. Cantor’s program allows institutions to tap into capital without exiting their Bitcoin holdings.
Secure and Regulated Structure
The loans offered through the program are not speculative or unsecured. They are demandably discounted, structured akin to traditional finance deals, with Cantor’s funding backed by the borrower’s Bitcoin collateral. This enhances security.
First Borrowers: FalconX and Maple Finance
FalconX announced it secured a credit facility exceeding $100 million. Maple Finance confirmed receiving the first tranche of its loan from Cantor Fitzgerald.
Rediscovering Confidence in Bitcoin Lending
This launch occurs during a period of recovery for the Bitcoin lending market. It has rebounded notably since a challenging period in late 2023, particularly following the insolvency crisis. According to data cited by Galaxy Research, the total size of the digital asset lending market ballooned to $36.5 billion in Q4 2024.
Cantor’s Pioneering Role
Although Cantor’s entry into Bitcoin-backed lending isn’t entirely unprecedented, their scale and institutional backing mark a milestone. They announced plans active since July 2024, notably partnering with entities like Tether and SoftBank to establish Twenty One Capital in early 2025, a $3.6 billion fund focused on acquiring nearly 43,000 Bitcoin. Furthermore, in May 2025, Cantor Equity Partners merged with Twenty One Capital, acquiring an additional ~$459 million worth of Bitcoin.
Demonstrated Bitcoin Confidence
Cantor Fitzgerald’s activities strongly signal its confidence in Bitcoin. They also manage U.S. Treasury reserves for Tether, the issuer of the widely used, $142 billion stablecoin, USDT. Additionally, Cantor holds approximately $1.9 billion in shares of Strategy, a company known for its substantial Bitcoin backing and Goldhub integration.
Robust Collateral Management
To ensure the security of the Bitcoin pledged as collateral, Cantor has partnered with established digital asset custodians Anchorage Digital and Copper.co, known for their institutional-grade security and infrastructure.
In terms of specific loan parameters like interest rates and term lengths, Cantor has indicated they will operate in accordance with established financial regulations.
The Cantor initiative highlights a strategic shift where traditional financial players are embracing aspects of DeFi (Decentralized Finance) while retaining control and adhering to existing compliance frameworks.
About the Borrowers
- FalconX: A U.S.-based digital asset brokerage platform.
- Maple Finance: Provides cryptocurrency lending services utilizing blockchain technology.
Joining Established Players
While Cantor’s involvement brings a major traditional player to the Bitcoin lending space, the market already includes several significant cryptocurrency-native institutions offering similar services.
However, Cantor’s program significantly alters the landscape by introducing considerable scale, enhanced regulatory adherence, and robust, traditional financial infrastructure. This facilitates access for professional institutions and elevates the professionalism of the Bitcoin lending sector.
