Cantor Fitzgerald Partners with Anchorage Digital, Copper for $2 Billion Bitcoin Financing

Cantor Fitzgerald, a leading financial services firm, has announced a strategic collaboration with digital asset custodians Anchorage Digital and Copper to support its Bitcoin financing business. This partnership is designed to enhance the security and reliability of Cantor Fitzgerald's digital asset offerings, leveraging the advanced security solutions provided by Anchorage Digital and Copper.

The collaboration will see Anchorage Digital and Copper acting as collateral managers and custodians, ensuring the safekeeping of clients' digital assets. Their robust security architecture will provide unparalleled resiliency and redundancy, safeguarding the assets and offering institutional investors secure access to Bitcoin financing. This move is part of Cantor Fitzgerald's broader strategy to expand its Bitcoin financing capabilities, with an initial financing of $2 billion aimed at providing leverage to institutional investors holding Bitcoin.

Cantor Fitzgerald's decision to partner with Anchorage Digital and Copper underscores the firm's commitment to delivering top-tier digital asset services. By integrating these custodians' advanced security solutions, Cantor Fitzgerald aims to set a new standard for digital asset management, ensuring that clients' assets are protected with the highest levels of security and reliability. This partnership is expected to strengthen Cantor Fitzgerald's position in the digital asset market, providing a secure and efficient platform for institutional investors to engage in Bitcoin financing.

Cantor Fitzgerald unveiled its Bitcoin financing business in July, with the aim of providing leverage to investors who own Bitcoin. The firm's new service is expected to debut with $2 billion in initial financing. This initiative comes at a time when the use of Bitcoin as collateral for loans has become a common practice in decentralized finance, or DeFi. However, following a series of high-profile business collapses in 2022, leading crypto firms have scaled back their associated services.

In response to these challenges, Cantor Fitzgerald has chosen partners that are well-versed in the institutional crypto scene. Copper, a firm that provides custody and settlement solutions to institutional investors, was founded in 2018. The company’s platform allows customers to stake digital assets, trade on exchanges, and explore decentralized finance strategies. Anchorage Digital, which also caters to institutions, specializes in crypto trading and received a federal charter from the Office of the Comptroller of the Currency in 2021, enabling banks to use its platform to provide services to customers. The New York Department of Financial Services granted Anchorage Digital a BitLicense in December