Cantor Fitzgerald, Tether’s banking partner, is planning a program to let clients borrow dollars using Bitcoin as collateral. Bloomberg reported that the program will launch with $2 billion and aims to scale to tens of billions.
Expansion Plans and Recruitment Efforts
Cantor Fitzgerald is recruiting for this program, which is yet to officially launch. If Tether joins, it will be one of several financial contributors, sources told Bloomberg.
Strong Financial Links Between Cantor Fitzgerald and Tether
The firm already holds deep ties with Tether. Its custody services earn tens of millions yearly by managing U.S. Treasury bills that back USDT. Unlike other banks, Cantor Fitzgerald continues to provide banking support to Tether.
Recent Stake Acquisition
In the past year, Cantor Fitzgerald acquired a 5% stake in Tether for approximately $600 million, as reported by The Wall Street Journal.
Howard Lutnick’s New Role
Howard Lutnick, Cantor Fitzgerald’s CEO, has been nominated for U.S. Commerce Secretary. After Senate confirmation, he will step down as CEO.
Political Influence and Tether
Lutnick’s transition may offer Tether political support. Giancarlo Devasini, a major Tether shareholder, believes Lutnick can help counter regulatory threats. As a Trump adviser, Lutnick also influences decisions about officials overseeing Tether.
Tether’s Controversies and Lutnick’s Defense
Tether often faces scrutiny over its USDT reserves. Lutnick defended the company, confirming it holds enough reserves to back USDT. However, Tether recently denied allegations of violating U.S. sanctions and anti-money laundering rules.
Advocating for Bitcoin Regulation
Lutnick supports Bitcoin and digital assets. He urges regulators to treat Bitcoin like gold or oil, criticizing their lack of understanding.
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