Cantor Fitzgerald Partners With Tether on $2 Billion Bitcoin Lending Initiative

By: Eliza Bennet

Cantor Fitzgerald, a well-established financial services firm known for its comprehensive banking partnerships, including with the stablecoin project Tether, is planning to expand its efforts in the cryptocurrency sector by launching a significant new Bitcoin lending program. This development was reported significantly by Bloomberg, noting that Cantor is positioning itself to allow clients to secure dollar loans using Bitcoin as collateral. The initial funding of $2 billion is expected to grow substantially, reaching into tens of billions, as the initiative unfolds.

The firm has initiated recruiting efforts for this project, which is yet to be officially launched, but involves Cantor as a crucial financial contributor. This move is in line with Cantor's increasing affinity with Tether, the most utilized stablecoin in the crypto market. Despite various global banks distancing themselves from crypto ventures, Cantor Fitzgerald has steadfastly provided banking services to Tether, managing U.S. treasury bills worth billions that underpin Tether's market operations, generating significant fees.

Howard Lutnick, the CEO of Cantor Fitzgerald and a well-known crypto enthusiast, has been nominated by President-elect Donald Trump to take on the role of Commerce Secretary. Lutnick's potential confirmation is seen as a beneficial stride for Tether, potentially ensuring strong political support and advocacy at the highest levels of U.S. government. His influence may extend to recommending candidates for other significant government roles, setting the stage for a favorable regulatory environment for Tether.

Lutnick has publicly reiterated the stability of Tether’s backing, asserting its reserve adequacy amidst recurrent skepticism over whether Tether holds enough reserves to fully support its USDT issuance. Additionally, Lutnick's proactive stance on Bitcoin, advocating for its classification as a commodity similar to gold, aligns with ongoing efforts to deepen ties in the crypto environment. Despite recent legal challenges alleging non-compliance with sanctions and money laundering regulations, Tether has consistently denied any wrongdoing. In this climate of uncertainty, Cantor's decisive actions underscore a commitment to advancing cryptocurrency integration into mainstream financial mechanisms.