Cryptocurrency market maker Wintermute has obtained a Bitcoin-backed credit line from institutional finance firm Cantor Fitzgerald, marking a significant step to enhance liquidity for its over-the-counter (OTC) trading operations. While the exact credit amount remains undisclosed, this arrangement will strengthen Wintermute’s capacity to execute large-volume trades and implement sophisticated hedging strategies amid volatile market conditions.
The financing facility falls under Cantor Fitzgerald’s $2 billion Bitcoin Financing business launched in mid-2024, which has established similar agreements with major industry participants including FalconX Ltd. This development coincides with the crypto lending market’s recovery, where total lending volumes rebounded to $36.5 billion by the end of 2024—notably below the sector’s $64.4 billion peak in 2021 but signaling renewed institutional engagement.
By leveraging Bitcoin as collateral, Wintermute can optimize capital efficiency for OTC transactions without forced asset liquidation while maintaining competitive pricing. The partnership underscores the maturing infrastructure supporting institutional cryptocurrency activities and reflects growing confidence among traditional finance players in blockchain-based collateral solutions.