Crypto market maker Wintermute has secured a Bitcoin-backed credit line from investment bank Cantor Fitzgerald.
Securing the Credit Line
Wintermute, a well-known crypto market maker, has secured a Bitcoin-backed credit line from investment bank Cantor Fitzgerald. Although the size of the facility was not disclosed, CEO Evgeny Gaevoy stated that it would help the firm manage the capital-intensive nature of OTC trading and settlement.
Cantor Fitzgerald Initiative
This deal is part of Cantor Fitzgerald's newly launched $2 billion Bitcoin Financing Business, aimed at providing secured credit facilities to institutional crypto firms. Launched in mid-2024, the program has already provided financing, including deals with FalconX Ltd and Maple Finance.
State of Crypto Lending Market
Cantor Fitzgerald's entry into crypto lending signals a cautious revival in an industry shaken by major collapses like Celsius Network and BlockFi in 2022. According to Galaxy Research, the total size of the crypto lending market reached $36.5 billion by the end of 2024, more than doubling from its low in Q3 2023.
The credit line from Cantor Fitzgerald allows Wintermute to strengthen its position in the market and support its operations, which may indicate potential growth in crypto lending overall.
