Howard Lutnick, the leader of Cantor Fitzgerald LP, is working to strengthen the financial partnership with Tether Holdings Ltd., the company behind the world's largest stablecoin USDT. According to internal sources, Lutnick is negotiating to expand the financial relationship between his businesses and Tether
Cantor Fitzgerald LP is discussing receiving support from Tether for a multi-billion dollar lending program, where customers use Bitcoin as collateral. The plan will start with $2 billion and could expand to tens of billions of dollars.
Currently, Tether uses Cantor's custody services to hold billions of dollars in U.S. government bonds to back the value of the USDT stablecoin. This relationship generates tens of millions of dollars in revenue for Cantor each year, according to well-informed sources.
Lutnick, who is the co-chair of Donald Trump's transition team, has been nominated by Trump for the position of U.S. Secretary of Commerce. Trump, who has recently publicly supported digital assets like Bit, is considering creating a new position at the White House dedicated to crypto policy.
=> Read more: Donald Trump considers creating a new position on cryptocurrency policy
Transition plan and future cooperation
Lutnick, in his role preparing to lead the Department of Commerce, is planning to transfer the partnership with Tether to his colleagues at Cantor. His son, Brandon Lutnick, is currently a trader at Cantor and has previously interned at Tether in Lugano, Switzerland.
Although it is one of the most powerful companies in the cryptocurrency industry, Tether has faced government scrutiny, including from the U.S., over allegations of anti-money laundering violations and international sanctions. However, Tether has denied these allegations.
In a separate development, the Wall Street Journal reported that Cantor Fitzgerald has invested in Tether, with Cantor's stake valued at around $600 million, equivalent to a 5% ownership in the company.
While Cantor is still hiring staff to implement the lending program, the official loans have not yet started. If Tether participates, they will be one of the many financial contributors.
