Financial Services Firm Cantor Fitzgerald Explores Bitcoin Lending Program with Tether
Financial services firm Cantor Fitzgerald, in partnership with Tether, is in talks to launch a program that will allow clients to borrow dollars against Bitcoin as collateral, as per a report by Bloomberg.
Key Points:
- Cantor Fitzgerald plans to start lending against Bitcoin with an initial amount of $2 billion.
- The program is expected to grow to tens of billions in the future.
- Tether’s collaboration with Cantor Fitzgerald would make it one of several financial contributors to the program.
Deep Business Ties with Tether
Cantor Fitzgerald already has strong business connections with Tether, earning significant fees for holding billions of dollars worth of U.S. treasury bills that back the stablecoin USDT.
Acquisition of Stake in Tether
The Wall Street Journal reported that Cantor Fitzgerald acquired a 5% stake in Tether for approximately $600 million in the past year, further solidifying their partnership.
Potential Political Support for Tether
With Cantor Fitzgerald CEO Howard Lutnick nominated as the next Commerce Secretary, Tether could benefit from significant political support. Lutnick’s influence is expected to neutralize any threats against Tether.
Controversy and Investigations
Tether has faced scrutiny regarding its reserves and compliance with regulations. Despite controversies, Lutnick has defended Tether’s practices multiple times, asserting that the stablecoin is backed by sufficient reserves.
Advocacy for Digital Assets
Lutnick, a proponent of Bitcoin and digital assets, believes regulators should treat cryptocurrencies like commodities such as gold or oil. He emphasizes the need for better understanding and regulation of digital assets.
