Cantor Fitzgerald made a quick entry into the market with its newly launched Bitcoin Financing Unit and plans to provide up to $2 billion in financing through this unit in the initial phase. Last month, Cantor also offered similar Bitcoin-backed financing to crypto companies such as Cantor Maple Finance and FalconX. Most recently, Wintermute, a market maker and OTC trading firm operating in the crypto market, secured a Bitcoin-backed credit line from Cantor. However, the full size of this agreement has not been disclosed.
Cantor's major Bitcoin move: $2 billion in financing
The world-renowned investment bank Cantor Fitzgerald has taken an important step to strengthen its position in the field of institutional financing in the cryptocurrency markets. The company aims to provide up to $2 billion in financing in the initial phase through its newly launched Bitcoin Financing Unit.
Cantor's new initiative includes a credit agreement with Wintermute, one of the leading market makers in the cryptocurrency asset markets. Under the agreement, Wintermute gained access to a Bitcoin-backed credit line. Although the transaction amount was not disclosed, this partnership follows similar agreements announced last month with Maple Finance and FalconX.
Wintermute CEO Evgeny Gaevoy emphasized that this credit line facilitates liquidity management, which is particularly necessary for OTC (over-the-counter) transactions, and provides effective risk protection across markets. Gaevoy said, “Such credit facilities enable us to hedge risks and maintain liquidity across multiple platforms, allowing us to continue our capital-intensive operations.”
A new corporate era after the crisis?
Borrowing and lending activities in the cryptocurrency industry peaked in late 2021 and 2022, but many platforms suffered significant losses or went bankrupt during this period. The collapse of giants like Three Arrows Capital, Celsius, Voyager, and FTX had shaken confidence in credit activities within the sector. However, Cantor’s move may signal the beginning of a new and more regulated credit era on the institutional side.
Cantor's launch of its Bitcoin financing business highlights the strengthening of bridges between traditional finance and crypto, as well as the renewed interest of large institutions in the sector. The collateralized structure provided by this financing line stands out as an important confidence-building element that has caught the attention of traditional investors and regulatory bodies.
Institutional crypto activity is increasing in the US
Wintermute's expansion of its activities in the US market is also noteworthy. The company notes that the Trump administration's crypto-friendly stance has led to significant trading activity in the country. ETF developments and changes in interest rate policies are also increasing institutional investors' interest in Bitcoin, stablecoins, and selected altcoins.
Wintermute CEO Gaevoy noted that this increased demand is directly reflected in their operations, stating, “Macroeconomic changes in the markets and product developments have reignited institutional investors. We are strengthening our position accordingly.”
