Cantor Fitzgerald Eyes $2B Bitcoin Lending Project With Tether as Chief Takes Commerce Role

• Howard Lutnick is deepening financial collaboration with Tether Holdings.
• Cantor Fitzgerald plans a $2 billion Bitcoin-backed lending program.
• Lutnick’s firm holds a 5% stake in Tether, valued at up to $600 million.

Howard Lutnick, CEO of Cantor Fitzgerald, is expanding his firm’s relationship with Tether Holdings, the issuer of USDT, the world’s largest stablecoin.

Discussions are underway to launch a multibillion-dollar Bitcoin-backed lending program, allowing clients to borrow dollars using Bitcoin as collateral.

The initiative aims to start with $2 billion in initial funding, with plans to grow the program into tens of billions of dollars, according to sources familiar with the discussions.

Custody and Collaboration

Cantor’s custody business already plays a critical role for Tether by holding billions of dollars in U.S. Treasuries that back USDT.

This custodial relationship reportedly generates tens of millions of dollars in annual revenue for Cantor, highlighting the financial significance of the partnership.

However, the dynamics of this relationship may evolve as Lutnick prepares for a significant transition.

Lutnick’s Transition to Commerce Secretary

President-elect Donald Trump has nominated Lutnick to serve as the next U.S. Secretary of Commerce.

Known for his deep connections in finance and cryptocurrency, Lutnick has been a strong advocate for Tether through Cantor Fitzgerald’s operations.

His nomination aligns with Trump’s strategy of appointing pro-crypto figures to key positions in his administration. Lutnick also serves as co-chair of Trump’s transition team.

Initially considered for the Treasury Secretary role, Lutnick lobbied for the position and received public backing from high-profile figures like SpaceX CEO Elon Musk.

However, Trump selected Wall Street veteran Scott Bessent for the Treasury role. Lutnick’s Commerce nomination, though unexpected, remains a significant appointment.

Pending Senate confirmation, Lutnick plans to transfer oversight of Cantor’s partnership with Tether to colleagues.

His son, Brandon Lutnick, who interned with Tether in Lugano, Switzerland, may play a role in managing the collaboration.

Shaping the Future of Bitcoin Lending

Cantor Fitzgerald’s planned Bitcoin-backed lending initiative underscores Wall Street’s growing integration with the crypto industry.

If successful, this program could set a precedent for how major financial institutions collaborate with blockchain-based firms.

With Lutnick’s anticipated confirmation as Commerce Secretary, his dual influence in Washington and the crypto industry could shape policy discussions and further integrate digital assets into the broader financial landscape.