Trump's Commerce Secretary's Company Acquires Tether Shares and Will Launch $2 Billion BTC Lending Program
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Trump's Commerce Secretary's Company Acquires Tether Shares and Will Launch $2 Billion BTC Lending Program
With Lutnick joining the Trump administration next year, Tether is expected to gain significant political support.
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Translation: Blockchain Knight
Cantor Fitzgerald, a financial services firm serving as a banking partner to Tether, is seeking collaborations with stablecoin issuers to launch a program allowing clients to borrow U.S. dollars using BTC as collateral, Bloomberg reported on Sunday.
The company currently plans to open loans backed by $2 billion worth of BTC, but expects this figure to grow into hundreds of billions of dollars.
Cantor Fitzgerald has been actively raising funds for this yet-to-be-launched initiative.
A source said: "If Tether decides to cooperate, it would become one of several financial backers."
Cantor Fitzgerald has established deep business ties with Tether.
Cantor earns tens of millions of dollars annually in custody fees for holding billions of dollars in U.S. Treasury bills that back the world's largest stablecoin, Tether (USDT).
In fact, even as multiple global banks have refused service, Cantor Fitzgerald has continued providing banking support to Tether.
In addition, according to a November 24 report by The Wall Street Journal, Cantor Fitzgerald agreed last year to acquire approximately 5% of Tether’s shares for about $600 million.
Just days ago, Trump nominated Howard Lutnick, CEO of Cantor Fitzgerald, as the next Secretary of Commerce. Lutnick is also one of Trump’s transition advisors.
Once confirmed by the Senate, Lutnick will step down from his role as CEO of Cantor Fitzgerald.
With Lutnick joining the Trump administration next year, Tether is poised to gain significant political support.
According to The Wall Street Journal, Giancarlo Devasini, believed to be Tether’s largest shareholder, previously stated that Lutnick would use his political influence to neutralize any potential threats against Tether.
The report also noted that as a transition advisor, Lutnick already has a voice in who Trump selects for other senior government positions, including those who may regulate Tether.
Tether has frequently been embroiled in controversy, with some questioning whether it holds sufficient reserves to fully back USDT on a 1:1 basis with the U.S. dollar.
But Lutnick has repeatedly provided personal assurances in defense of Tether.
In January, Lutnick confirmed that Tether indeed holds sufficient reserves to back its stablecoin.
Moreover, last month The Wall Street Journal reported that Tether is under investigation in the United States over potential violations of sanctions and anti-money laundering regulations.
However, Tether has disputed these claims.
Lutnick, a well-known supporter of BTC and digital assets, said in September: "Regulators should treat BTC as a commodity, just like gold or oil."
"Regulators know almost nothing about digital assets or how to regulate them."
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