Funding for Kantar’s program will start at $2 billion, but could reach tens of billions of dollars Kantar has a 5% ownership interest in Tether, valued at $600 million Howard Lutnick to serve as U.S. Secretary of Commerce and step down as CEO of Kantar to be confirmed by the U.S. Senate
Cantor Fitzgerald is reportedly planning a multibillion-dollar program that could receive support from Tether.
According to people familiar with the matter, the planned program would allow customers of the financial services firm to make dollar loans using Bitcoin as collateral, Bloomberg reported. Funding for the program will start at $2 billion but could reach tens of billions of dollars.
Financing has not yet begun, but if Tether participates it will be one of many funders of the program. Kantar already manages the majority of Tether's assets through its custody business, which generates tens of millions of dollars for Kantar each year.
The Wall Street Journal recently reported that Kantar signed a deal with Tether in which it will receive a 5% ownership stake in a stablecoin worth $600 million. According to reports, the statement was released before the announcement of Kantar CEO Howard Lutnick's selection as U.S. Secretary of Commerce.
A Tether spokesperson said the company's “relationship with Cantor is completely professional” and that “it is ludicrous that Mr. Lutnick's involvement with the transition team would somehow translate into influence over regulatory action.” said.
“Please show me the money.”
News of Cantor's plans came last week when Lutnick was nominated to be secretary of commerce as President-elect Donald Trump prepares to enter the White House in January.
Lutnick plans to resign from Cantor's post as soon as the U.S. Senate confirms his position, in order to comply with “government ethics rules.” Mr. Lutnick currently manages his company's relationship with Tether. However, if he deletes himself, he will be passing this on to his colleagues.
Lutnick met with Tether's owner, Giancarlo Devasini, in the Bahamas in 2021 to determine whether Tether held the assets it claimed. At a crypto conference in July, Lutnick said:
“Basically I told him the line of motion. I said, 'Show me the money.' And we found every penny, and they had every penny, but they had it in what I would call a pretty godforsaken place. ”
In January, Tether challenged a United Nations report that found USDT to be widely used for money laundering. Tether said it was “disappointed by the UN assessment” which ignored the stablecoin issuer’s efforts to support developing countries in emerging markets.
In response, Tether reiterated its commitment to working with law enforcement, saying that Tether transactions can be tracked on the blockchain, making them “an impractical option for illegal activity.”
