Howard Lutnick, US President-elect Donald Trump\u2019s pick for Commerce Secretary, aims to launch a $2 billion project to lend dollars to clients who supply Bitcoin as collateral, according to Bloomberg citing people familiar with the matter on Nov. 24.<\/p>\n
Funding for the program will start at $2 billion and is \u201cexpected to eventually reach into the tens of billions,\u201d one of the sources told<\/a> Bloomberg.<\/p>\n Lutnick\u2019s financial services firm, Cantor Fitzgerald, currently provides custody services to Tether. It uses it to hold the billions of dollars of US Treasuries that act as reserves for its USDT stablecoin.<\/p>\n As Lutnick prepares<\/a> for a US government position, he is planning to hand over his firm\u2019s relationship with Tether to colleagues. Brandon Lutnick, his son who works at Cantor as a trader, has previously interned with Tether in Lugano, Switzerland, Bloomberg noted.<\/p>\n \u201cTether Investments is looking to use part of the profits generated in the past years for different opportunities,\u201d a Tether spokesperson told<\/a> Reuters.<\/p>\n Cantor\u00a0announced<\/a> the Bitcoin financing project in June, stating at the time, \u201cWe are excited to help unlock Bitcoin\u2019s full potential and continue bridging the gap between traditional finance and digital assets.\u201d<\/p>\n Additionally, Cantor struck a deal to invest in Tether with a stake valued at as much as $600 million, equating to about a 5% ownership interest, according to a Wall Street Journal report over the weekend.<\/p>\n \u201cI wonder if that\u2019s an older share purchase, dating back to a lower interest rate period and smaller Tether market cap,\u201d mulled<\/a> Bitcoin pioneer Adam Back, who added, \u201csounds a bit cheap otherwise given the revenue you can calculate from interest at treasury rates.\u201d<\/p>\n Cantor Fitzgerald is buying 5% of Tether for $600M.<\/p>\n Cantor gets a stake in one of the most profitable companies, while Tether gains regulatory protection.<\/p>\n Cantor CEO @howardlutnick<\/a>, is Trump\u2019s pick for Commerce Secretary.<\/p>\n Somewhere, @Bitfinexed<\/a> is crying.<\/p>\n Bullish for Bitcoin.<\/p>\n \u2014 Wayne Vaughan (@WayneVaughan) November 24, 2024<\/a><\/p>\n\n The WSJ has repeatedly targeted Tether with FUD, its latest in October claiming<\/a> that the firm was being investigated for failing to comply with AML laws, an accusation that CEO Paolo Ardoino denied, labeling it as regurgitated \u201cold noise.\u201d<\/p>\n Industry observers have speculated that the targeting of Tether by US financial regulators could be coming to an end under the new pro-crypto administration.<\/p>\n Tether\u2019s USDT supply has surged more than 10% since the beginning of November to $132.8 billion, giving it a commanding market dominance of 68.5%.<\/p>\n The total stablecoin market cap has surged to a record high of $194 billion, representing 5.5% of the entire crypto market, according to Coingecko.<\/p>\n The post Cantor Fitzgerald to Tap Tether in $2B Bitcoin Lending Project, Secures 5% Stake<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Howard Lutnick, US President-elect Donald Trump\u2019s pick for Commerce Secretary, aims to launch a $2 billion project to lend dollars to clients who supply Bitcoin as collateral, according to Bloomberg citing people familiar with the matter on Nov. 24. Funding for the program will start at $2 billion and is \u201cexpected to eventually reach into […]<\/p>\n","protected":false},"author":0,"featured_media":23425,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-23424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/23424"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23424"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/23424\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/23425"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Cantor Tether Partnership<\/h2>\n
Tether Supply Surges<\/h2>\n