One of the largest banks in the United States of America sees a new opportunity in Bitcoin: lending.
What’s happening:
- Cantor Fitzgerald is launching a new type of lending which is aimed at providing financing to individuals and companies who hold Bitcoin as an asset
Why it matters:
- Traditional banks beginning to recognize Bitcoin as an asset that can be used as collateral for lending is an important advancement for digital assets as a whole and is likely to accelerate the adoption of large companies owning Bitcoin
By the numbers:
- Cantor Fitzgerald will begin with $2B USD in initial capital for the sole purpose of lending against Bitcoin holdings
Going deeper:
- Bitcoin and digital assets merging into traditional public markets has continued to accelerate as a trend, with more publicly traded companies than ever beginning to accumulate Bitcoin to hold directly as an asset
- Big banks beginning to pursue crypto has also been on the rise, notably with one of the United Kingdom’s largest banks Standard Chartered announcing they are getting ready to launch a trading desk focused exclusively on Bitcoin and Ethereum
