Cantor Fitzgerald Planning Multi-Billion Dollar Program with Tether Support
Key Points:
- Funding for Cantor’s program to start at $2 billion, potentially reaching tens of billions
- Cantor holds a 5% ownership interest in Tether, valued at up to $600 million
- Cantor’s CEO, Howard Lutnick, set to step down upon confirmation as US Commerce Secretary
Cantor Fitzgerald is in the works to launch a multi-billion dollar program that could receive backing from Tether, a stablecoin.
As per sources, this initiative would allow clients of the financial services firm to lend dollars using Bitcoin as collateral. The program’s initial funding is set at $2 billion but has the potential to grow into tens of billions in support.
Although the lending activity has not commenced, the involvement of Tether could make it a significant contributor to the program. Cantor already oversees the majority of Tether’s assets through its custody business, generating substantial revenue for Cantor annually.
Cantor’s Collaboration with Tether:
Cantor recently secured a deal with Tether, acquiring a 5% ownership stake in the stablecoin, valued as high as $600 million. This partnership was established before Howard Lutnick, Cantor’s CEO, was nominated for the position of US Commerce Secretary.
A spokesperson from Tether emphasized the professional nature of their relationship with Cantor and dismissed any claims of undue influence due to Lutnick’s potential government role.
“Show Me the Money”
News of Cantor’s ambitious program comes amid Lutnick’s nomination for Commerce Secretary under President-elect Donald Trump.
To adhere to government ethics regulations, Lutnick intends to relinquish his position at Cantor once confirmed by the US Senate. While currently overseeing the firm’s ties with Tether, Lutnick plans to delegate these responsibilities to colleagues upon his departure.
Tether’s Response to Allegations:
In response to accusations of involvement in money laundering, Tether refuted a United Nations report that implicated USDT. The stablecoin issuer highlighted its efforts to support developing nations in emerging markets and emphasized the traceability of Tether transactions on the blockchain, making it unsuitable for illicit activities.
