Financial services firm Cantor Fitzgerald, which serves as Tether's banking partner, is considering working with stablecoin issuers on a program that would allow customers to borrow dollars against Bitcoin, Bloomberg reported on Sunday. .
The company will start with $2 billion in Bitcoin loans, but the amount is expected to grow to tens of billions of dollars. Cantor Fitzgerald is recruiting for a program that has not yet officially started. If Tether decides to cooperate, it would be one of several funders, anonymous sources familiar with the matter told Bloomberg.
Cantor Fitzgerald already has a strong business relationship with Tether. The company's custodian business earns tens of millions of dollars in fees annually for storing billions of dollars' worth of U.S. Treasuries backing the world's largest stablecoin, Tether (USDT). In fact, Cantor Fitzgerald has continued to provide banking support to Tether despite refusals from several banks around the world.
Additionally, the Wall Street Journal reported on November 24 that Cantor Fitzgerald agreed to acquire a 5% stake in Tether for about $600 million over the past year.
Earlier this week, President-elect Donald Trump nominated Cantor Fitzgerald CEO Howard Lutnick, one of Trump's transition advisers, to be the next Secretary of Commerce. Mr. Lutnick will step down as Cantor Fitzgerald's CEO upon confirmation by the Senate.
With Lutnick joining the Trump administration next year, Tether is expected to receive significant political support. According to the Wall Street Journal, Tether's largest shareholder, Giancarlo Debasini, previously said that Lutnick would use his political influence to neutralize any potential threats to Tether.
The WSJ report also claims that as a transition adviser, Lutnick already has a say in who President Trump chooses for other top government positions, including who may oversee Tether. I am doing it.
Tether has often been embroiled in controversy, with some questioning whether Tether has enough reserves to back USDT 1:1 with the US dollar. Mr. Lutnick has personally vouched for Tether many times. In January, Lutnick confirmed that Tether has enough reserves to back a stablecoin.
Additionally, last month, the Journal reported that Tether was under investigation in the United States for possible violations of sanctions and anti-money laundering rules. However, Tether refuted this claim.
Mr. Lutnick is known as a supporter of Bitcoin and digital assets. Lutnick said in September that regulators should treat bitcoin as a commodity like gold and oil. He further said that regulators have little understanding of digital assets and how to regulate them.
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