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Investment banking firm Cantor Fitzgerald has selected Anchorage Digital and Copper as its Bitcoin custodians and collateral managers as it launches its new digital asset financing business targeting institutional investors.
In a March 11 announcement, Cantor Fitzgerald said it is rolling out its Bitcoin (BTC) financing business with $2 billion in initial capital to help institutional investors borrow against their crypto holdings.
Anchorage Digital and Copper will safeguard clients’ digital assets by acting as custodians and collateral managers, the company said.
Anchorage Digital is an institutional cryptocurrency platform that operates the only federally chartered digital asset bank in the United States.
Copper is a crypto custodian backed by Barclays, the British multinational financial institution.
Copper CEO Amar Kuchinad said Cantor Fitzgerald’s new offering will help institutional investors “diversify their portfolios” into digital assets. He cited the “growing demand for sophisticated financing solutions” in the Bitcoin space.
Cantor Fitzgerald unveiled plans for its BTC financing business in July of last year “to provide leverage to investors who hold Bitcoin,” the company said at the time.
Since then, the company has broadened its exposure to the digital asset market, including acquiring a 5% stake in stablecoin issuer Tether.
Cantor Fitzgerald has more than $5 billion in assets under management, based on the latest regulatory filings.
Related: Bitcoin miner CleanSpark to join S&P SmallCap 600 Index
Institutional Bitcoin demand remains strong despite market volatility
The successful launch of US spot Bitcoin exchange-traded funds (ETFs) more than one year ago revealed the huge pent-up demand for BTC among institutional investors. By February, Bitcoin exchange reserves had fallen to more than two-year lows thanks to institutional buying pressure.
Despite the recent market sell-off that was triggered by the US-led tariff war and recession fears, institutional Bitcoin investments continue to grow, with more Wall Street firms moving into the custody business.
As Forbes reported, Citi and State Street are planning to offer crypto custody services by 2026.
A separate Bloomberg report on March 11 revealed that German exchange group Deutsche Boerse is planning to launch Bitcoin and Ether (ETH) custody beginning next month.
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