Cantor Fitzgerald CEO Howard Lutnick, nominated as Commerce Secretary by President-elect Donald Trump, is spearheading plans for a $2 billion lending initiative, leveraging Bitcoin as collateral. Backed by Tether, the world’s largest stablecoin provider, this program aims to provide dollar loans to clients against Bitcoin holdings, with expectations to scale into the tens of billions, according to the Wall Street Journal.
Cantor Fitzgerald already serves as Tether’s custody provider, safeguarding billions in U.S. Treasuries supporting USDT. The firm has acquired a 5% ownership stake in Tether, valued at $600 million.
The ambitious lending initiative has begun staffing but has not formally commenced operations. As Lutnick transitions to his role in the Commerce Department, he plans to hand over oversight of Cantor’s relationship with Tether to colleagues. His son, Brandon Lutnick, a former intern at Tether’s Lugano office, currently works as a trader at Cantor.
This move aligns with the Trump administration’s broader interest in digital assets. Reports suggest the transition team is evaluating the creation of a new White House crypto policy position. President-elect Trump has recently embraced digital assets, promoting ventures like World Liberty Financial, linked to his sons.
If confirmed, Lutnick would oversee the Commerce Department’s 47,000 employees, managing diverse functions such as the Census Bureau and trade promotion.
However, Tether continues to face regulatory scrutiny over alleged sanctions violations and anti-money laundering concerns, allegations it firmly denies. Despite this, USDT maintains its dominance as the largest stablecoin with a market cap exceeding $132 billion.
The deep ties between Trump and Lutnick, rooted in their financial and real estate ventures, are evident in their history of professional collaboration and mutual support during Trump’s presidential campaigns.
