Wall Street titan Cantor Fitzgerald has made waves in the crypto sphere, closing its inaugural Bitcoin lending deal nearly a year after heralding its foray into the digital lending arena. As of May 27, 2025, the firm has extended Bitcoin-backed loans to FalconX and Maple Finance, marking a significant milestone in its efforts to blend traditional finance with the burgeoning crypto market.
Bridging TradFi and DeFi
The crypto lending landscape is no stranger to volatility. Yet, Cantor Fitzgerald’s move to provide a $100 million facility to FalconX and a tranche to Maple Finance suggests a growing confidence in the sector’s resilience. “This partnership is a testament to the maturing of digital asset markets,” commented a source familiar with the deal, who wished to remain anonymous due to the sensitivity of the information. This trend echoes the broader industry movement towards Bitcoin DeFi, as detailed in our coverage of Franklin Templeton’s Bitcoin DeFi push.
FalconX, known for its digital asset brokerage, sees this as part of a broader credit framework—an indication of its strategic maneuvering in an industry where liquidity is king. Meanwhile, Maple Finance’s engagement with Cantor highlights its ambition to scale operations amid a competitive market landscape.
A New Chapter for Bitcoin Liquidity
The significance of such deals lies in their ability to unlock liquidity without necessitating the sale of Bitcoin holdings. This strategy appeals to institutions holding substantial BTC reserves, allowing them to leverage assets without parting with them. Since announcing its Bitcoin financing business with a formidable $2 billion capital injection in July 2024, Cantor has targeted institutional investors eager to harness their Bitcoin for credit.
Anchorage Digital and Copper, trusted as custodians and collateral managers, bring an added layer of security and credibility to Cantor’s crypto arm. This partnership underscores the firm’s commitment to providing a robust infrastructure that mirrors traditional finance’s reliability while tapping into the potential of decentralized finance (DeFi).
Learning from the Past
The journey of crypto credit markets hasn’t been smooth sailing. The 2022 digital asset crisis left a trail of cautionary tales, with Celsius Network’s collapse and BlockFi’s bankruptcy sending shockwaves through the industry. These events underscored the need for prudent risk management and clearer regulatory oversight—areas Cantor is keenly aware of.
Howard Lutnick, Cantor’s CEO, has been vocal about treating Bitcoin as a commodity, akin to gold and oil. This perspective aligns with his calls for more definitive crypto regulations in the US, advocating for a regulatory environment that supports innovation while safeguarding investors.
The Road Ahead
Crypto lending markets, though recovering, remain below their early 2022 peaks. As of the last quarter of 2024, the total crypto lending market, including CDPs tied to stablecoins, was valued at $36.5 billion—a stark contrast to the $64.4 billion high in 2021. Despite this contraction, on-chain lending platforms have experienced a remarkable resurgence, with open borrowed positions reaching $19.1 billion by the end of 2024—a staggering 959% increase over two years. This resurgence aligns with predictions that Bitcoin DeFi could surpass Ethereum and Solana in user adoption, as discussed in our report on Bitcoin DeFi’s potential user base.
Cantor’s involvement in crypto lending is a pivotal development, potentially setting the stage for other traditional financial institutions to follow suit. Yet, questions linger about whether this trend can sustain its momentum amidst ever-evolving market dynamics and regulatory landscapes.
Cantor Fitzgerald’s venture into Bitcoin-backed loans represents more than just a financial transaction. It’s a bold statement about the future of finance—a future where digital assets and traditional finance coexist, unlocking new opportunities while navigating the complexities of a rapidly changing world. As the industry continues to adapt, the eyes of the financial world will be keenly focused on how this experiment unfolds.
Source
This article is based on: Maple Finance, FalconX secure Bitcoin-backed loans from Cantor Fitzgerald — Report
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
