Cantor Fitzgerald, a major financial powerhouse valued at $13.2 billion, is set to make a significant foray into the crypto market with its recent plans to launch a large-scale Bitcoin-backed lending operation. The firm aims to introduce a dedicated Bitcoin financing business that will offer leverage to Bitcoin holders, marking a notable step in merging traditional finance with the digital asset sector.
The firm is backing this venture with an impressive initial investment of $2 billion, signaling its commitment to expanding in the cryptocurrency finance arena. Howard Lutnick, Chairman of Cantor Fitzgerald, expressed enthusiasm about the initiative, underscoring the firm’s extensive experience in securities and commodities financing and its strong support for Bitcoin. Lutnick highlighted the firm’s goal to create a “cutting-edge platform” tailored to Bitcoin investors’ financing needs, aiming to unlock Bitcoin’s full potential and bridge the gap between traditional finance and digital assets.
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To support the successful launch and operation of this new business, Cantor Fitzgerald will collaborate with select Bitcoin custodians, though their identities have not yet been disclosed.
In a separate development, data analytics platform Arkham reported a significant Bitcoin transfer of $2 billion from the US government to a new address early Monday. This transfer, which appears to be a 10,000 BTC deposit, likely involves institutional custody or service provider. Bloomberg ETF expert James Seyffart suggested that this move might be linked to the US Marshals Service’s partnership with Coinbase for managing its digital asset portfolio.
This partnership, announced by Bitcoinist in early July, is expected to improve the custody, management, and disposal of the government’s cryptocurrency assets, potentially allowing for greater diversification in asset handling. Last month, the US Marshals Service recognized the need for reliable storage and liquidation methods for large quantities of popular cryptocurrencies, leading to the selection of Coinbase.
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It remains uncertain whether these transfers are intended for custody or if they might signal a potential selling spree by the US, which could impact Bitcoin’s current upward trajectory. As of now, Bitcoin has retreated to $67,400 after reaching a one-month high of $70,000 on Monday.
David Ma was born in 1980 in California, is a Vietnamese American, known as one of the entrepreneurs and investors in the field of cryptocurrency and stock market. In 2006, he graduated from Stanford University with honors and began his career in business.
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