Wintermute Secures Bitcoin-Backed Credit Line From Cantor Fitzgerald

Wintermute, a prominent digital assets-focused market maker and over-the-counter (OTC) desk, has secured a bitcoin-backed credit line from Cantor Fitzgerald. This development follows similar financing deals that Cantor Fitzgerald announced last month with Maple Finance and FalconX. The newly launched Bitcoin Financing Business by Cantor Fitzgerald is anticipated to provide up to $2 billion in financing during its initial rollout, although the specific size of Wintermute’s deal with the investment bank has not been disclosed.

This credit line is expected to bolster Wintermute’s operational capabilities, particularly in managing settlement windows and maintaining capital across multiple venues. According to Wintermute CEO Evgeny Gaevoy, the facility will enhance the firm’s ability to hedge risks effectively across exchanges and maintain broad market coverage. This is crucial given the capital-intensive nature of Wintermute’s operations, especially in OTC trading.

The lending and borrowing of crypto assets have been occurring on an industrial scale for several years. However, many firms involved in these activities have incurred heavy losses or been forced into bankruptcy as contagion spread through the industry. Cantor Fitzgerald’s entry into this space may signal a new phase characterized by more institutional-friendly practices.

Wintermute is currently expanding its presence in the U.S., where there is a growing movement in crypto trading under the pro-innovation administration. Institutional demand for digital assets such as bitcoin, stablecoins, and select high beta altcoins continues to accelerate. This demand is driven by various catalysts, including developments in exchange-traded funds (ETFs) and shifts in interest rate environments.