Wall Street Financial Cantor Fitzgerland closed the first Bitcoin lending deal almost a year after the announcement of encryption lending services.
According to To the Bloomberg report on May 27, Cantor presented loans supported by Bitcoin to Falconx and MAPLE Finance. Valonx, a digital asset broker, said that she has received facilities worth more than $ 100 million as part of a “wider credit framework”, while the financing of the maple that closed the first segment of an agreement with Cantor.
The service allows companies that are holding Bitcoin to borrow money and use cryptocurrency as a guarantee, providing a way to cancel liquidity lock without selling their BTC holdings. Cantor announced Bitcoin financing with a first -capital capital in July 2024, targeting institutional investors who seek to benefit from Bitcoin. At the time, the company said that Anchorage Digital and Copper will act as a dirt and managers of the project.
Credit markets are an essential part of the financial system, allowing capital to flow between borrowers and lenders and support economic activity across sectors. Their central role also means that they can contribute to financial distress when poor risk management. While some traditional financing functions reflect, encrypted credit markets work with less organizational supervision.
The 2022 digital assets crisis
This dynamic was clear during the 2022 crisis in the digital assets sector. Network CELSIUS, which was once a pioneering coding platform, collapsed after engaging in risky financial practices and facing allegations of fraud. Likewise, Blockfi was introduced to bankruptcy of Chapter 11 in November 2022 after a large fully exposure to the FTX encryption.
According to To a report from Galaxy, the total coding lending market, including the coded debt sites associated with Stablecoins, amounted to 36.5 billion dollars in the last quarter of 2024, witnessing a decrease in its position at the level of 43 %, as there was a decrease in the first position, as there was a decrease in the first position, where there was a decrease in the center. It rose to $ 19.1 billion by Q4 2024, an increase of 959 % over two years.
Cantor’s encryption arm
Cantor is one of the most traditional financial services companies in the United States. Founded in 1945, it provides a set of services to institutions, including investment services, mediation, stocks, and sales with fixed income. The company claims to serve more than 5,000 customers in 20 countries.
The CEO of the company, Howard Lutnick, was a defender of the Bitcoin classification as a commodity, such as gold and oil, and called for clearer regulatory frameworks in the United States. Lutnick was also appointed to the transfer team from US President Donald Trump in 2024.
Cantor is also one of the managers of Tether Us Treasury Securities that support Stablecoin. In early 2024, the company acquired a 5 % stake in Tether.
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