Cantor Fitzgerald Plans $2 Billion Bitcoin Lending Program via Tether: Report
Author: Content Editor
Cantor Fitzgerald, a global financial services firm, is reportedly planning to launch a Bitcoin lending program that would allow clients to borrow dollars using Bitcoin as collateral. Initially, the program will begin with a $2 billion allotment and may expand as crypto adoption increases. The move is seen as another step towards a closer relationship between Wall Street and the crypto industry, especially as regulatory changes are expected under the incoming Biden administration. Cantor is already recruiting staff for the initiative, and the program may involve multiple financial contributors alongside Tether. Cantor's chief, Howard Lutnick, who was recently nominated as Commerce Secretary under President-elect Donald Trump, plans to divest his interests in the firm to comply with US government ethics rules. Cantor already manages most of Tether's assets through its custody business and holds a 5% stake in Tether. Tether, the company behind the USDT stablecoin, has faced scrutiny in the past regarding the reserves backing its issuance. Potential shifts in US crypto legislation, including a framework for stablecoin regulation introduced by bipartisan senators, could impact Tether's operations. The company's offshore corporate structure has also drawn the attention of US legislators seeking to bring dollar-pegged stablecoins under domestic regulatory frameworks.