Cantor Fitzgerald Plans $2 Billion Bitcoin Loan Program Through Tether: Report

US financial services and bond trading company Cantor Fitzgerald is said to be discussing a multi-billion dollar bitcoin-backed lending program with the help of Tether.

The proposed program allows customers to borrow dollars using Bitcoin as collateral. Initially, the operation will start at $2 billion, Bloomberg reports, though it has the potential to expand as crypto sees greater adoption. Report Saturday.

It's another step toward the symbiotic relationship between Wall Street and the crypto industry, which will continue to grow stronger this year, especially as expected. Transition in crypto policy It stands out as Trump prepares to enter the White House.

The Bitcoin lending program, which is still in its infancy, could involve multiple financial contributors along with Tether, according to the report. Cantor is already hiring for the initiative.

The move comes as Cantor's boss, Howard Lutnick. He was appointed as Secretary of Commerce by President-elect Donald Trump on Wednesday and is said to be underway. Preparing to hack His interests in the organization.

In a statement prepared after the appointment Lutnik he said. He intends to do so “to comply with the US government's code of conduct”.

Lutnick's departure from key roles also applies to Cantor, BGC and Newmark.

As Lutnick prepares to step down from Cantor pending Senate confirmation, he plans to hand over the company's Tether connection to his colleagues.

His son, Brandon, has been mentioned as a candidate, according to Bloomberg. Brandon, formerly of Tether's Swiss operations, is now based at Cantor and is said to have counted the gold bars backing Tether's $660 million gold-backed token (Tether Gold) during his internship in Lugano.

“The ratings for Cantor, BGC and Newmark include key person risk associated with Lutnick, which outweighs his majority voting control, market connections, close involvement in many business matters, and influence over the companies' strategic direction.” Opinion Claims from Fitch Ratings.

More at risk

Cantor already manages most of Tether. 132 billion dollars in assets Earning tens of millions in annual fees from his security business. In particular, Cantor acquired a 5% stake in Tether worth $600 million, according to separate sources. Report From the WSJ.

The WSJ report cited a statement issued before Lutnick's nomination as commerce secretary, in which a spokesman said Teter's relationship with Cantor was purely professional and dismissed suggestions that Lutnick's political connections could influence regulatory action.

The same report cited Lutnick's statements at a bitcoin conference in Nashville in July describing his first meeting with Tether CFO Giancarlo DeVacini.

“I basically told him the line from the movie. Show me the money.” […] And we got every penny, and they had every penny.

These statements point to something Tether has struggled with over the years: authentication. Reserves After years of skepticism from industry insiders and outsiders, he supports the stablecoin offering.

UN Report Released in January, it described Tether as the “preferred choice” for those looking to emulate USDT, while the US Treasury Department Congress asked For new powers to block stablecoin transactions linked to illegal activities.

Teter has repeatedly denied those claims, saying instead that he would support them Law enforcement The authorities and policy makers to reduce the use of its stablecoin for illegal activities.

Stablecoin Regulation in the US

It changes crypto law It could hurt stablecoin issuers based in the US; Decrypt It has already been reported. In April, bipartisan Senators Kirsten Gillibrand (D., New York) and Cynthia Lammis (R., Wyo.) Introduced framework A stablecoin regulation that helps protect consumers and promote “responsible innovation.”

The bill seeks to ban offshore operations of Statcoins using the US dollar as a peg, which could lead to significant changes in Tether production.

Tether Limited, the company that controls the supply of USDT, is incorporated in Hong Kong and is wholly owned by Tether Holdings Limited, which in turn is registered in the British Virgin Islands.

In the year Tether's offshore banking relationships came under heightened scrutiny in 2021 after an $18.5 million settlement with the New York attorney general's office for misappropriating its reserves. of Landmark container It caused major US banks to cut ties with Tether partners.

The company's deliberately offshore corporate structure, which operates across multiple jurisdictions, has made it a target for US lawmakers seeking to bring the dollar-denominated stablecoin under domestic regulatory frameworks.

Edited by Sebastian Sinclair.