Howard Lutnick, President-elect Donald Trump’s nominee for Commerce Secretary, is reportedly in discussions to expand financial collaborations between his firm, Cantor Fitzgerald, and Tether, the company behind the world’s largest stablecoin, Reuters reports.
According to Bloomberg News, the partnership would launch a $2 billion project aimed at lending dollars to clients using Bitcoin as collateral.
Cantor Fitzgerald is seeking support from Tether to fund the ambitious initiative, which insiders suggest could grow to tens of billions of dollars. Tether has confirmed its interest in exploring new investment opportunities using profits generated in recent years, though details remain tentative. Cantor Fitzgerald has not commented on the report.
Currently, Tether relies on Cantor Fitzgerald to manage billions of dollars in US Treasury holdings that back its stablecoin. This relationship has reportedly generated substantial annual revenues for Lutnick’s financial services firm.
Stablecoins, like Tether’s USDT, are designed to maintain a fixed value and are backed by traditional assets such as US dollars or euros. They serve as critical components in the cryptocurrency market by providing liquidity and stability.
Lutnick, an advocate for cryptocurrency adoption, has been actively involved in advancing digital asset initiatives through Cantor Fitzgerald. His nomination as Commerce Secretary positions him to influence US trade and tariff policy while overseeing various functions, from investment promotion to census operations.
The proposed partnership could mark a significant milestone in integrating cryptocurrency into traditional financial frameworks. However, the involvement of a prominent government appointee in such ventures raises questions about potential conflicts of interest.
Both Tether and Cantor Fitzgerald have yet to release detailed statements, and discussions about the project remain ongoing.
