Wintermute has emerged as one of the first participants in Cantor Fitzgerald's new Bitcoin Financing Business with the acquisition of a Bitcoin-backed credit line.
Credit Line from Cantor Fitzgerald
Wintermute, a notable crypto market maker, has entered into a deal with investment bank Cantor Fitzgerald, securing a Bitcoin-backed credit line. The exact size of the credit facility remains confidential, but it marks a significant step in Cantor's new $2 billion Bitcoin Financing Business.
Objectives and Benefits of the Credit
Wintermute CEO Evgeny Gaevoy stated that the facility would bolster the company's ability to operate efficiently in the capital-heavy OTC trading space. 'Given the capital-intensive nature of our operations, especially OTC trading, the facility enhances our ability to hedge risks effectively across exchanges,' he remarked.
Crypto Lending Market After Collapse
Cantor Fitzgerald launched its Bitcoin Financing Business in mid-2024 to provide secured credit lines to institutional players. The crypto lending market has recently recovered from prior dips caused by the collapse of major lenders like Celsius Network and BlockFi in 2022. According to Galaxy Research, the crypto lending market grew to $36.5 billion by the end of 2024.
The acquisition of the credit line from Cantor Fitzgerald enables Wintermute to enhance its capabilities in the crypto trading market, potentially contributing to further development in the crypto lending sector.
