Bitcoin’s Big Break: Cantor Fitzgerald’s $2B Lending Program 🤑

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So, Cantor Fitzgerald, the global financial firm, just launched a $2 billion loan program backed by Bitcoin. 🤷‍♂️ According to a report, they’ve already closed their first deals. This move comes as crypto lending is trying to get its groove back after some major defaults in 2022. 🤦‍♂️

Based on a report by Bloomberg, Cantor Fitzgerald set aside $2 billion to lend against Bitcoin. The plan rolled out over the past year. It began in July 2024 with a promise to work with trusted custodians. 🤝

By April 2025, the global financial services firm teamed up with Tether, SoftBank, and Bitfinex on Twenty One Capital, a $3.6 billion fund. That fund aims to hold more than 42,000 Bitcoin and was structured using a $200 million SPAC. The big picture: Cantor is serious about making Bitcoin loans a regular product. 📈

Institutional credit continues to scale: Portfolio companies @maplefinance and @falconxnetwork are supporting origination and distribution for Cantor Fitzgerald’s $2B Bitcoin-backed lending arm. A key step in maturing crypto capital markets.

— CMT Digital (@CMT_Digital) May 27, 2025

FalconX And Maple Get Backing

FalconX secured the first slice of credit, planning to tap more than $100 million. Maple Finance followed with a similar deal for its customers. Both firms confirmed they’ve drawn on the new line already. 🎉

These early loans show that trustworthy names can still access crypto financing. Demand is there, and lenders seem ready to pick up the pieces after the Celsius and BlockFi collapses. 🧱

Strong Bets From Big Investors

The bank’s faith in Bitcoin goes deeper than loans. Cantor Equity Partners quietly bought about $459 million of Bitcoin in May 2025 through a merger with Twenty One Capital. On top of that, Cantor holds nearly $2 billion in Strategy stock. 🤑

This stake ties their fortunes to price swings. They say they’ll keep buying even if prices drop sharply, showing they aren’t scared of the ups and downs. 🚀

Caution As Risks Linger

Other players are moving in, too. Strive raised $750 million to build a Bitcoin stash and chase special credit deals. Blockstream grabbed new investments, and Xapo Bank started offering its own crypto loans this year. 🤝

Traditional banks haven’t sat out. The Bank of Montreal put $150 million into crypto ETFs. Barclays added $130 million. BNY Mellon availed of $68 million in Strategy shares. Morgan Stanley, Wells Fargo, and UBS are set to roll out spot Bitcoin ETF services by year-end. 🏦

Even so, Bitcoin can swing wildly. A sudden price drop or a margin call could force quick sales. Lenders and borrowers will need clear rules and solid plans to keep things running smoothly. 🤔

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2025-05-29 05:29