After months of anticipation, Cantor Fitzgerald has officially stepped into the world of Bitcoin-backed lending, marking its first major move in crypto finance since announcing the initiative last year. The Wall Street mainstay has quietly inked its first deals, partnering with digital asset broker FalconX and decentralized credit marketplace Maple Finance, according to a Bloomberg report on May 27.
For FalconX, the arrangement includes a lending facility worth over $100 million, forming part of a broader credit strategy. Maple Finance, meanwhile, has reportedly completed the initial phase of its agreement with Cantor. Both entities are using Bitcoin as collateral to unlock capital—enabling access to liquidity while retaining their crypto holdings.
This milestone marks a key evolution in institutional crypto lending. Instead of relying solely on volatile investor sentiment or opaque practices, Cantor Fitzgerald’s model brings a more traditional finance approach to the digital asset space. With $2 billion in committed capital and infrastructure supported by Anchorage Digital and Copper—acting as custodians and collateral managers—Cantor’s crypto lending arm is built to serve institutional players with security and scale in mind.
Bridging TradFi and Crypto Finance
Credit markets are the beating heart of traditional finance, and their importance extends into the digital world. However, unlike regulated banking channels, crypto lending markets have often operated in a gray zone, prone to risks and lacking proper oversight. The implosions of Celsius Network and BlockFi in 2022 served as stark warnings. Both firms collapsed after overextending themselves with high-risk strategies, made worse by the FTX catastrophe. The aftermath left billions in losses and a long shadow over the industry.
Yet the tide appears to be turning. According to data from Galaxy, the total crypto lending market was valued at $36.5 billion by the end of 2024—a significant drop from its $64.4 billion peak in 2021, but still a sign of resilience. Even more telling is the resurgence of onchain lending. Open borrowing positions on decentralized platforms surged to $19.1 billion by Q4 2024, representing an astounding 959% increase in just two years.
Cantor’s entry into the space could offer a path to greater stability. By applying traditional financial rigor to digital assets, the firm is aiming to help mature the ecosystem—while capturing new opportunities for growth.
A Wall Street Powerhouse Steps In
Founded in 1945, Cantor Fitzgerald is no stranger to managing institutional capital. The firm provides investment banking, brokerage, and trading services to more than 5,000 clients in over 20 countries. Its entrance into crypto lending reflects growing recognition that digital assets—especially Bitcoin—are more than just speculative plays.
Cantor CEO Howard Lutnick has publicly backed the idea that Bitcoin should be treated as a commodity, much like gold or oil. He has also voiced support for stronger regulatory clarity in the U.S. crypto sector. Lutnick’s influence extends beyond finance—he was tapped to co-lead former President Donald Trump’s transition team in 2024.
The firm is also closely linked to Tether, the issuer of the world’s largest stablecoin. Cantor manages Tether’s U.S. Treasury holdings and acquired a 5% stake in the company earlier this year—further underscoring its commitment to digital finance.
Looking Ahead
As Cantor Fitzgerald builds out its crypto lending platform, it may set a precedent for how legacy financial institutions can engage with Bitcoin without compromising traditional standards. For Maple Finance, FalconX, and likely others to follow, this could signal the start of a more sustainable and scalable era in crypto credit.
The message is clear: institutional crypto lending isn’t just returning—it’s evolving. And this time, Wall Street is here to help shape the rules.
