Wintermute Secures Wall Street’s First Bitcoin-Backed Credit Line

Digital asset trading desk Wintermute has been provided with a record-breaking Bitcoin-backed credit line by Wall Street giant Cantor Fitzgerald, the newest benchmark in the institutionalization of crypto credit markets. The deal, which forms part of Cantor’s newly launched $2 billion Bitcoin Financing Business, marks the first of its kind between a leading U.S. investment bank and a leading digital asset trading desk, and could be the start of a new era of regulated, risk-managed financing for the sector. How the Deal Works While the exact size of Wintermute’s facility is not disclosed, the structure is simple: Wintermute posts Bitcoin as collateral, opening a revolving credit line to finance its capital-intensive over-the-counter (OTC) trading operation. The loan is fully collateralized, with Cantor likely using institutional custodians such as Anchorage Digital or Copper to custody assets—a plan that is starkly different from the riskier, at times undercollateralized lending arrangements that collapsed during the 2022 crypto credit crisis. Wintermute CEO Evgeny Gaevoy pointed out that the credit line ”enhances our ability to hedge efficiently across venues and have broad market coverage,” a requirement for OTC desks that handle settlement windows and cross-venue liquidity. For Cantor, the agreement is within the context of a broader $2 billion plan to provide secured credit to institutional crypto firms, with other agreements already inked with Maple Finance and FalconX, the latter of which reportedly attracted over $100 million. A New Phase for Institutional Crypto Credit The tie-up marks a maturing market. Wall Street now brings regulated credit, strict risk controls, and institutional-grade custody to an industry still recovering from the collapses of Celsius, BlockFi, and others. The crypto lending market more than doubled to $36.5 billion by the end of 2024, although it is still off its 2021 high, according to Galaxy Research. The Cantor-Wintermute deal is seen as a confidence boost, with demand for Bitcoin-backed credit surging as spot BTC ETFs see record inflows and institutional treasuries accumulate digital assets. Funding Doors Open for Trading Desks Industry observers expect this deal by Cantor will be the precursor for more of the same, as other market making and trading desks will also be seeking regulated, collateralized credit to fund their operations and hedge risk. ”This facility puts Wintermute a notch above in capital management of more than 2,000 OTC counterparties and expanding its US foot-print through pro-innovation policies under the Trump administration, catalyzing institutional crypto adoption.”. For Cantor, the acquisition presents a strategic bet on the future of digital assets, positioning the firm as a prime broker for the next wave of crypto finance. As more banks enter the sector, the days of opaque, risky lending are giving rise to transparent, regulated, and institution-friendly credit—paving the way for greater liquidity and stability in the crypto environment. Bottom Line Wintermute’s Cantor Fitzgerald Bitcoin-backed credit facility is more than a single trade—it’s an indication that institutional crypto finance is entering a new, more mature phase. As regulated credit replaces risky lending, trading desks and market makers can see new funding doors opening, reshaping liquidity, risk management, and the future of digital asset markets.

Source: Coinpaper