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CoinTelegraph 2025-05-27 20:30:26

Maple Finance, FalconX secure Bitcoin-backed loans from Cantor Fitzgerald — Report

Wall Street financial firm Cantor Fitzgerald has closed its first Bitcoin lending deal nearly a year after announcing its crypto lending services. According to a May 27 Bloomberg report, Cantor provided Bitcoin-backed loans to FalconX and Maple Finance. FalconX, a digital asset broker, said it secured a facility worth over $100 million as part of a “broader credit framework,” while Maple Finance reportedly closed the first tranche of an agreement with Cantor. The service allows companies holding Bitcoin to borrow funds and use the cryptocurrency as collateral, providing a way to unlock liquidity without selling their BTC holdings. Cantor announced its Bitcoin financing business with an initial capital of $2 billion in July 2024, targeting institutional investors seeking to leverage their Bitcoin. At the time, the company said Anchorage Digital and Copper would serve as custodians and collateral managers in the venture. Credit markets are a fundamental part of the financial system, allowing capital to flow between borrowers and lenders and supporting economic activity across sectors. Their central role also means they can contribute to financial distress when risks are mismanaged. While mirroring some functions of traditional finance, crypto credit markets have been operating with less regulatory oversight. Digital asset crisis of 2022 This dynamic was evident during the 2022 crisis in the digital asset sector. Celsius Network, once a leading crypto lending platform, collapsed after engaging in risky financial practices and facing allegations of fraud. Similarly, BlockFi filed for Chapter 11 bankruptcy in November 2022 following significant exposure to the collapse of crypto exchange FTX. According to a report from Galaxy, the total crypto lending market, including crypto-backed collateralized debt positions (CDPs) tied to stablecoins, stood at $36.5 billion in the last quarter of 2024, marking a 43% decline from its all-time high of $64.4 billion in 2021. Despite the broader contraction, onchain lending platforms have seen a dramatic rebound, with open borrowed positions surging to $19.1 billion by Q4 2024, a 959% increase over two years. Crypto lending markets remain well below their Q1 2022 peak. Source: Galaxy Cantor’s crypto arm Cantor is one of the most traditional financial services companies in the United States. Founded in 1945, it offers a range of services for institutions, including investment banking, brokerage, equity and fixed-income sales and trading. The company claims to serve over 5,000 clients across 20 countries. The company’s CEO, Howard Lutnick, has been an advocate for classifying Bitcoin as a commodity, akin to gold and oil, and has called for clearer regulatory frameworks for cryptocurrencies in the US. Lutnick was also appointed to co-lead US President Donald Trump’s transition team in 2024. Cantor is also one of the managers of Tether’s US Treasury securities portfolio backing its stablecoin. In early 2024, the firm acquired a 5% stake in Tether. Magazine: Unstablecoins: Depegging, bank runs and other risks loom

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