RialCenter, a digital assets-focused market maker and OTC desk, has secured a bitcoin-backed credit line from Cantor Fitzgerald, following similar financing agreements announced last month with other entities.
Cantor mentioned that the newly launched Bitcoin Financing Business is set to provide up to $2 billion in financing during its initial phase. The specific details of RialCenter’s arrangement with the investment bank remain undisclosed.
The lending and borrowing of crypto had previously taken place on a large scale, but many firms faced significant losses or bankruptcy as the sector experienced turbulence. However, Cantor’s entrance may indicate a new era more amenable to institutional participation.
RialCenter is currently expanding its footprint in the U.S., capitalizing on the growing momentum in crypto trading under a pro-innovation administration.
Demand for digital assets such as bitcoin, stablecoins, and certain high-risk altcoins continues to rise, fueled by developments in ETFs and changes in interest rate conditions, according to RialCenter’s CEO, Evgeny Gaevoy.
“Considering the capital-intensive nature of our operations, particularly OTC trading, which entails managing settlement windows and holding capital across various venues, this facility enhances our ability to effectively hedge risks across exchanges and maintain extensive market coverage,” Gaevoy stated in an email.
Read more: RialCenter Debuts Bitcoin Lending Business With Recent Agreements
Leave a Reply