Hello there! Today, I want to walk you through a groundbreaking development in the world of cryptocurrency: Cantor Fitzgerald’s move to launch a $2 billion Bitcoin-backed financing desk. On May 27, 2025, Cantor officially activated this facility, signaling that traditional finance is fully embracing Bitcoin as a collateral asset. This is more than just another product announcement—it’s a clear message that Wall Street’s giants now see Bitcoin not merely as a speculative bet but as a creditworthy instrument capable of underpinning loans and liquidity. By staking a substantial portion of their balance sheet on Bitcoin collateral, Cantor is sending a strong signal: Bitcoin is here to stay, and it can be integrated seamlessly into regulated financial services.
Cantor Fitzgerald isn’t a newcomer. Founded in 1945, it has a storied history in fixed-income trading, equity brokerage, prime brokerage, and asset management. Over the decades, Cantor has evolved into one of the most respected names on Wall Street, surviving immense challenges—including the tragic losses on September 11, 2001—and emerging stronger, diversified across various financial services. Today, with over 12,000 employees in more than 60 offices worldwide, Cantor serves over 5,000 institutional clients across the Americas, Europe, Asia-Pacific, and the Middle East.
In 2024, Cantor began signaling its intent to integrate Bitcoin into its core offerings. Early collaborations included managing backup U.S. Treasury reserves for Tether, reflecting mutual trust between a traditional financial powerhouse and a leading crypto issuer. By mid-2024, Cantor formally announced plans to launch a Bitcoin financing business with initial capacity of $2 billion. They partnered with Anchorage Digital and Copper.co—two leading custodians committed to institutional-grade security—to ensure that any Bitcoin pledged as collateral would be held under the strictest regulatory and technical safeguards.
The $2 B Bitcoin Financing Desk Announcement
Official Launch and Timeline
On May 27, 2025, Cantor Fitzgerald officially launched its Bitcoin financing desk, activating a $2 billion facility that would provide credit lines collateralized by Bitcoin. The formal announcement underscored that Cantor would make available up to $2 billion of financing in its initial phase, with an eye toward significant growth as market demand increased. Cantor’s Chairman emphasized that this launch was the culmination of many months of preparation—risk modeling, custodian onboarding, and legal framework development—carefully designed to offer institutions an alternative to selling Bitcoin when they needed liquidity.
Leading up to late May 2025, Cantor had quietly executed multiple initial trades under this desk, working with well-established crypto-native firms to test and validate its underwriting processes. Cantor’s Co-CEO and Global Head of Fixed Income noted that institutions holding Bitcoin were hungry for alternative funding sources, especially during price downturns when selling Bitcoin would crystallize losses. By pledging Bitcoin as collateral, borrowers could maintain long-term BTC exposure while drawing liquidity in U.S. dollars or stablecoins—a compelling proposition for firms intent on growing their on-chain operations without liquidating core reserves.
Key Features of the Financing Desk
Capacity and Credit Framework
Cantor structured loans with loan-to-value (LTV) ratios between 50 percent and 70 percent, depending on collateral provenance and market volatility. These LTV ratios balanced capital efficiency for borrowers against a sufficiently large collateral buffer for Cantor to liquidate Bitcoin at a discount if necessary without incurring losses. To determine the specific LTV for each counterparty, Cantor’s underwriting team conducted detailed due diligence that evaluated both the quality of Bitcoin reserves—confirmed through audited proof of on-chain ownership—and the borrowing institution’s creditworthiness, which included reviewing financial statements, business models, and historical collateral valuations.
Interest Rates and Repayment Terms
Interest rates on Bitcoin-backed loans ranged from 8 percent to 12 percent APR, calibrated based on loan tenor and collateral quality. Longer-term loans—those extending six months to one year—typically attracted rates around 8 percent APR, while short-term facilities—three months or less—were priced nearer to 12 percent. Interest accrued daily and could be settled in U.S. dollars or USD-pegged stablecoins, giving borrowers payment flexibility. Moreover, Cantor allowed borrowers to prepay principal and interest at any time without penalties, enabling them to optimize collateral usage if Bitcoin’s price spiked. This competitive APR structure distinguished Cantor from many DeFi protocols, where rates could fluctuate wildly based on supply and demand.
Custodial Partnerships and Security Measures
A critical piece of Cantor’s financing desk was its partnership with Anchorage Digital and Copper.co to secure Bitcoin collateral. Anchorage Digital’s federal trust charter meant that all pledged Bitcoin was held in a segregated trust account, subject to stringent trust-account rules, audit requirements, and insurance coverage. Copper.co provided multi-party computation (MPC) custody, splitting private keys across multiple independent parties to eliminate single points of failure. Together, these custodial arrangements ensured that pledged Bitcoin was not commingled with borrower assets and could be liquidated swiftly under pre-agreed terms, all while maintaining compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Scalable Infrastructure and Reporting
Cantor also built a robust operational infrastructure around this desk. Real-time monitoring tools tracked Bitcoin’s market price and collateral valuations continuously, feeding data into Cantor’s proprietary risk engine. If Bitcoin’s value fell by more than 15 percent within 24 hours—pushing an LTV ratio above 70 percent—Cantor issued an automated margin call, requiring borrowers to top up collateral within a tight window. Failure to do so triggered partial liquidation of the pledged Bitcoin by Anchorage or Copper to restore the LTV to safe levels. Clients received weekly loan statements and monthly collateral reports, detailing outstanding balances, accrued interest, and current collateral valuations, ensuring full transparency.
In parallel with launching loans, Cantor merged with Twenty One Capital on April 23, 2025. Twenty One was a special purpose acquisition company (SPAC) backed by Tether, SoftBank, and other prominent investors, which brought over 42,000 Bitcoin onto Cantor’s balance sheet. This deep on-balance-sheet Bitcoin treasury served as an additional liquidity backstop and demonstrated Cantor’s institutional conviction in Bitcoin’s long-term potential. Prior to closing its first Bitcoin-backed loans, Cantor’s credit team collaborated with Twenty One’s treasury group to model scenarios in which Twenty One’s reserves could be tapped to cover collateral shortfalls—providing an added layer of security for counterparties.
By combining a $2 billion lending facility with a massive Bitcoin treasury, Cantor Fitzgerald made an unmistakable statement: it was fully committed to integrating Bitcoin into its core business, treating it as a creditworthy asset in much the same way Treasuries or corporate bonds have traditionally been used. For retail investors, this announcement represented a turning point—the moment when Bitcoin’s legitimacy as collateral was affirmed by a firm with a 79-year legacy in traditional finance.
How the Financing Desk Works
Eligible Participants and Underwriting Criteria
Cantor’s desk is designed specifically for institutions holding substantial Bitcoin reserves—crypto exchanges, lending platforms, hedge funds, and other large “hodlers” seeking liquidity without selling their Bitcoin. No retail or small-scale borrowers are eligible; Cantor’s minimum loan size generally starts in the tens of millions of dollars. Each prospective borrower must pass a rigorous two-part underwriting process: verification of collateral provenance and counterparty due diligence.
Collateral Verification requires audited proof of on-chain Bitcoin ownership, usually provided through multisignature wallets managed by Anchorage or Copper. The custodian confirms that the Bitcoin is free and clear of liens or encumbrances before it’s accepted as collateral. This step ensures Cantor holds a clean claim on the pledged Bitcoin in the event of default.
Counterparty Due Diligence mirrors traditional banking standards. Borrowers submit detailed financial statements, operational reports, and KYC/AML documentation. Cantor’s credit team assesses the borrower’s balance sheet, revenue model, historical collateral valuations, and overall business resilience. Only once both collateral and borrower satisfy Cantor’s stringent requirements does Cantor approve a credit facility.
Collateral Requirements and Custody Protocols
Once approved, borrowers must transfer Bitcoin into Anchorage or Copper-controlled multisignature wallets. Anchorage, as a federally chartered trust, holds each borrower’s Bitcoin in a segregated trust account—completely outside the borrower’s control. Copper’s multi-party computation (MPC) architecture splits private keys across multiple independent nodes, minimizing the risk of a single point of failure.
Cantor sets Loan-to-Value (LTV) ratios between 50 percent and 70 percent, based on collateral volatility, provenance, and market conditions. For example, Bitcoin derived from exchange deposits might carry a lower LTV (closer to 50 percent), while Bitcoin acquired through long-term HODL strategies might qualify for a slightly higher LTV. These thresholds ensure that, even if Bitcoin’s price plunges rapidly, Cantor can liquidate collateral—typically via on-chain auctions or over-the-counter (OTC) channels—at a discount yet still cover the outstanding loan without incurring losses.
Interest Rates, Tenors, and Repayment Structures
Interest on Cantor’s Bitcoin-backed loans ranges from 8 percent to 12 percent APR. Longer-duration loans, spanning six to twelve months, attract rates near the lower end (around 8 percent). Short-term facilities, three months or less, align with rates closer to 12 percent. Interest accrues daily and may be paid in U.S. dollars or USD-pegged stablecoins, per the borrower’s preference.
Borrowers benefit from Repayment Flexibility: they can prepay principal and interest at any time without penalty. This feature allows them to optimize collateral usage—if Bitcoin’s value spikes, they can pay down the loan early and reduce their collateral lock-up. Conversely, if market conditions deteriorate, borrowers can extend tenors within predetermined limits to avoid rapid margin calls.
Margin Calls and Liquidation Triggers are automated. If Bitcoin’s market price falls by more than 15 percent within a 24-hour window—pushing an LTV above 70 percent—Cantor issues a margin call, requiring borrowers to top up collateral within 24 hours. Failure to meet the margin call triggers partial liquidation of pledged Bitcoin by Anchorage or Copper, restoring the LTV to safe levels. This dynamic risk management is critical given Bitcoin’s historic volatility and ensures Cantor’s desk remains solvent even during severe downturns.
Operational Workflow and Reporting
Cantor’s desk follows a clear operational workflow:
1. Collateral Deposit: The borrower transfers Bitcoin into a multisignature wallet managed by Anchorage or Copper, which verifies the on-chain transfer and confirms ownership.
2. Loan Funding: Once collateral is confirmed, Cantor wires U.S. dollars or issues stablecoins to the borrower’s designated account—typically held at a major digital asset custodian or through Cantor’s prime brokerage network.
3. Daily Mark-to-Market (MtM): Anchorage and Copper provide real-time collateral valuations to Cantor’s risk engine, which recalculates each position’s LTV at least once every 24 hours. During periods of heightened volatility, these valuations update more frequently to catch rapid price swings.
4. Periodic Reporting: Borrowers receive detailed loan statements every week and comprehensive collateral reports monthly. These reports detail outstanding principal, accrued interest, and current collateral value, ensuring transparency for both Cantor and its counterparties.
5. Escalation Protocol: If Bitcoin’s price plunges sharply, Cantor’s risk engine triggers margin calls, which if unmet, lead to custodial liquidations. All steps are documented in emailed notifications and recorded on-chain for auditability.
Custodial Protections and Counterparty Safety Nets
Cantor’s move goes beyond simply extending liquidity; it provides robust safety nets to shield counterparties from systemic collapses:
• Segregated Trust Accounts: Anchorage holds each borrower’s Bitcoin in separate, insured trust accounts. This separation guarantees that if a borrower defaults, the liquidated collateral cannot be commingled with other assets or Anchorage’s operating funds.
• Insurance and Recovery Rights: Both Anchorage and Copper maintain insurance policies covering theft, fraud, or key compromise. If a custodian is compromised, borrowers can still recover collateral through the insurance framework, reducing counterparty risk.
• Frictions to Over-Leverage: By capping LTV at 70 percent and requiring additional collateral upon a 15 percent price drop, Cantor prevents borrowers from overextending—a protection absent in many DeFi protocols where flash liquidations can wipe out positions instantaneously.
Together, these measures exemplify why Cantor’s financing desk represents the maturation of institutional Bitcoin lending—combining traditional finance rigor with the flexibility of digital assets.
Regulatory and Market Impact
Regulatory Oversight and Compliance
In 2025, U.S. regulators indicated a more permissive stance toward institutional crypto engagement. The Office of the Comptroller of the Currency (OCC) rolled back certain restrictions on national banks’ crypto activities, while the Securities and Exchange Commission (SEC) clarified that digital assets could be accommodated under existing frameworks if issuers observed investor-protection rules. Cantor’s partnership with Anchorage Digital—holding a federal trust charter—ensures that all pledged Bitcoin is held in segregated, insured trust accounts. Anchorage’s charter subjects Bitcoin to audit requirements and trust accounting rules, providing regulatory assurance that collateral is managed properly. Copper.co’s status as a licensed Virtual Asset Service Provider (VASP) in multiple jurisdictions, including the U.K. and Switzerland, guarantees compliance with local anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
Within Cantor’s internal operations, counterparty due diligence mimics traditional banking standards: full KYC/AML verification, credit scoring based on audited financials, and on-chain analytics to confirm Bitcoin provenance. Custodial holdings are monitored in real time, with Anchorage and Copper furnishing proof-of-reserves attestations directly to Cantor’s risk engine. This real-time verification minimizes ambiguity around collateral ownership and ensures that pledged Bitcoin is free of liens or disputes. Should the Financial Crimes Enforcement Network (FinCEN) tighten travel rules or the SEC issue new guidance, Cantor’s layered compliance model—anchored by trusted custodians—facilitates rapid policy adjustments with minimal business disruption.
At the state level, Cantor liaises with the New York Department of Financial Services, maintaining a BitLicense-aligned audit trail and periodic reporting to ensure its Bitcoin financing arm remains fully compliant under state banking regulations. This multi-layered regulatory approach reassures institutions and retail investors alike that Cantor’s operations adhere to rigorous oversight, reducing the uncertainty that has historically plagued crypto credit markets.
Effect on Bitcoin Adoption and Perception
Cantor’s move reframes Bitcoin’s role in the financial ecosystem. Previously, many retail investors viewed Bitcoin primarily as a speculative asset—volatile, decentralized, and outside the scope of regulated institutions. By underwriting loans collateralized by Bitcoin and implementing robust liquidation protocols, Cantor presents Bitcoin as a professional-grade collateral asset capable of meeting the strict risk and regulatory standards of traditional finance.
This shift has tangible market repercussions. First, retail brokers and exchanges may now develop leveraged products—such as Bitcoin-backed margin accounts—underwritten by Cantor’s financing model. Retail traders could secure loans at LTV ratios near 60 percent with fixed APRs of 8–12 percent, contrasting sharply with DeFi’s automatic liquidations and volatile rates. Retail investors might also access structured products blending Bitcoin exposure with risk mitigants, such as downside hedges or partial guarantees.
Second, Cantor’s involvement signals to cautious retail investors that Bitcoin’s integration with legacy finance has reached a new level of maturity. Mainstream financial media coverage—from Reuters to the Financial Times—has highlighted how Cantor’s framework addresses custody, counterparty risk, and price-volatility concerns. Hearing that a firm with Cantor’s 79-year history is backing Bitcoin as collateral can reduce fear, uncertainty, and doubt (FUD) among retail investors, potentially spurring incremental inflows into Bitcoin.
Third, large-scale Bitcoin financing by Cantor creates stabilizing “circuit breakers” during market stress. In past downturns, a dearth of regulated liquidity options forced large holders to sell on spot markets, exacerbating price crashes and causing flash sell-offs. Now, with Cantor providing an alternative—liquidity against Bitcoin without requiring sales—retail investors may experience fewer flash crashes, tighter bid-ask spreads, and less slippage. These improvements enhance confidence in executing trades and could lead to higher overall trading volumes.
Finally, Cantor’s financing desk opens the door for innovative structured investment products—such as gold-protected Bitcoin funds—that blend Bitcoin’s upside potential with downside protection via traditional assets. Cantor Fitzgerald Asset Management’s launch of a Gold Protected Bitcoin Fund illustrates how traditional finance can package Bitcoin for risk-averse investors, further diminishing the notion that Bitcoin is too volatile or unregulated for mainstream portfolios.
Future Outlook
Cantor Fitzgerald’s Bitcoin financing desk, which began with a $2 billion capacity, is poised for rapid expansion driven by strong institutional demand and Cantor’s strategic integration with Twenty One Capital. Analysts project that, as Bitcoin’s market capitalization continues climbing, traditional finance lending desks like Cantor’s could eventually underwrite $10 billion or more in Bitcoin-backed loans within the next 12–18 months. In late May 2025, Cantor’s head of Bitcoin financing explicitly stated they “expect to substantially grow the operation over time,” signaling a clear appetite for scaling capacity.
