Financial services firm Cantor Fitzgerald, which acts as Tether's banking partner, is looking to partner with the stablecoin issuer on a program that would allow customers to borrow dollars against bitcoin as collateral, Bloomberg reported. It has been reported on sunday
While the company will start lending against Bitcoin at $2 billion, it is expected to grow into the tens of billions. Cantor Fitzgerald has been trying to recruit for the program, which has yet to officially launch. If Tether decides to cooperate, it will be one of several donations, sources familiar with the matter told Bloomberg.
Cantor Fitzgerald already has deep business relationships with Tether. Its custodial business receives tens of millions of dollars a year to hold the billions of US Treasuries that back the world's largest stablecoin, Tether (USDT). In fact, Cantor Fitzgerald has continued to provide banking support for Tether, even as several banks around the world have declined to do so.
In addition, the Wall Street Journal It has been reported On November 24, Cantor Fitzgerald agreed to buy a 5% stake in Tether for $600 million last year.
Earlier this week, President-elect Donald Trump got engaged Cantor Fitzgerald CEO Howard Lutnick, who also serves as one of Trump's transition advisers, will be the next commerce secretary. Lutnick will resign as CEO of Cantor Fitzgerald after receiving Senate confirmation.
With Lutnik joining the Trump administration next year, Teter can be expected to receive significant political support. According to the Wall Street Journal, Giancarlo Davacini, believed to be Tether's largest shareholder, previously said that Lutnik would use his political influence to neutralize any potential threats to Tether.
The WSJ report also claims that Lutnick, as a transition adviser, already has a say in Trump's picks for other top government roles, including those who could oversee Tether.
Tether has often been the subject of controversy, with some questioning whether Tether has enough USDT reserves to be backed 1:1 by the US dollar. Lutnick has personally guaranteed Tether several times. In January of this year, Lutnick confirmed that Tether has enough reserves to support its stablecoin.
Additionally, the WSJ reported last month that Tether is under investigation in the United States for possible violations of sanctions and anti-money laundering laws. But Teter denied these claims.
Lutnick is a well-known proponent of Bitcoin and digital assets. In September, Lutnick said That regulators should treat Bitcoin as a commodity like gold or oil. He also stated that regulators have little understanding of digital assets and how to regulate them.
