Cantor Eyes $2 Billion Bitcoin Lending Program with Tether
Howard Lutnick is strengthening his partnership with Tether Holdings Ltd., a major player in the digital-asset industry. Talks are underway to solidify financial connections between Lutnick’s businesses and Tether, the company behind the popular stablecoin.
Cantor Fitzgerald LP is exploring the possibility of Tether supporting its upcoming program to lend dollars to clients who provide Bitcoin as collateral. The initial funding for this program is set to begin at $2 billion and could potentially grow into the tens of billions over time.
Currently, Tether utilizes Cantor’s custody business to hold billions of US Treasuries that back its USDT stablecoin. This collaboration earns Cantor significant annual revenue, according to insiders.
It’s worth noting that Lutnick, co-chair of President-elect Donald Trump’s transition team, is actively involved in this endeavor. Trump himself has expressed interest in digital assets like Bitcoin and has been associated with a crypto project called World Liberty Financial, linked to his sons.
While Cantor is in the process of recruiting staff for the lending program, it has not officially commenced lending operations. If Tether becomes involved, it will likely be one of several financial contributors, sources suggest.
Tether has come under scrutiny from various governments, including the US, over alleged violations of sanctions and anti-money laundering regulations. The company, however, has refuted these accusations.
Additionally, Cantor has reportedly made an investment in Tether, with the stake valued at up to $600 million, representing about a 5% ownership interest. As Lutnick moves forward with his Commerce Department responsibilities, he plans to delegate his firm’s association with Tether to colleagues. His son, Brandon Lutnick, also has ties to both companies.
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