Catenaa, Saturday, November 30, 2024 – Cantor Fitzgerald, a prominent US financial services firm, is in discussions to launch a Bitcoin-backed lending program, potentially worth $2 billion, in collaboration with Tether.
The initiative would allow clients to borrow dollars using Bitcoin as collateral, with plans for expansion as the crypto market continues to grow.
According to reports, the program is still in its early stages and will likely involve multiple financial partners alongside Tether.
Cantor is already recruiting staff for the initiative.
The move marks a significant step in the growing convergence between traditional finance and the cryptocurrency sector, a trend amplified by changing policies under President-elect Donald Trump.
Howard Lutnick, Cantor’s CEO, recently nominated as Commerce Secretary, is set to divest his interests in the firm to comply with US government ethics rules.
Lutnick’s departure raises questions about the future of the firm’s relationship with Tether, though the company has stated that the partnership remains “entirely professional” and unrelated to political influence.
Cantor Fitzgerald is already deeply involved with Tether, managing a large portion of its $132 billion in assets. In addition, Cantor holds a 5% stake in Tether, valued at $600 million.
The firm’s long-standing relationship with Tether has been the subject of scrutiny, particularly regarding the stablecoin’s reserves and its role in global financial transactions.
The regulatory landscape surrounding stablecoins remains uncertain, with ongoing debates in the U.S. Congress over how to address the potential risks posed by cryptocurrencies like Tether.
