TL;DR
- Cantor Fitzgerald launched its Bitcoin-backed lending unit and granted its first financings to FalconX and Maple Finance.
- FalconX plans to draw over $100 million from a credit line arranged with Cantor; Maple closed the first phase of its deal.
- The crypto lending market has doubled in size since 2023 and is attracting capital again after the collapse of firms like Celsius and BlockFi in 2022.
Cantor Fitzgerald officially launched its Bitcoin-backed lending unit with a total capacity of $2 billion. The firm began operations by financing FalconX and Maple Finance.
FalconX closed a Bitcoin-backed credit line as part of a larger agreement with Cantor, from which it plans to draw over $100 million in successive tranches. Maple, meanwhile, confirmed the closing of the first phase of its financing deal with the New York firm.
This program aims to deepen Cantor’s presence in the digital asset market after years marked by corporate bankruptcies that paralyzed crypto lending. In 2022, the collapse of companies like Celsius and BlockFi caused a sharp decline in crypto-backed lending activity.
However, since 2023, the market has started to recover volume. According to Galaxy Research data, by the end of 2024, the total value of crypto loans reached $36.5 billion. Although this figure remains far from the 2021 record of $64.4 billion, it doubles the lowest level recorded in 2023.
Cantor Bets on the Recovery of the Crypto Lending Market
Cantor announced its plans for this division in July 2024, aiming to provide leverage to institutional Bitcoin holders. The firm also participated in launching Twenty One Capital, a company created to accumulate BTC in partnership with Tether and SoftBank. These moves reflect a strategy to fill gaps that traditional financial firms still avoid after solvency issues hit several crypto platforms.
Besides Cantor, other companies are trying to revive the Bitcoin-backed lending market. Blockstream secured a multimillion-dollar investment to expand its crypto lending funds. Xapo Bank began offering Bitcoin-backed loans up to $1 million in March. These operations show that the market is attracting capital again, though with tighter controls and greater institutional oversight.
Howard Lutnick’s departure from Cantor in February, after taking office as U.S. Secretary of Commerce, did not stop these plans
