Cantor Fitzgerald and Tether Reportedly Plan $2B Bitcoin-Backed Lending Program
- Customers would be able to borrow money using Bitcoin as collateral.
- Wall Street’s and the crypto industry’s mutually beneficial connection has grown stronger.
Cantor Fitzgerald , a bond and financial services trading business in the United States, is allegedly in talks with Tether about launching a multibillion-dollar lending program backed by Bitcoin.
Customers would be able to borrow money using Bitcoin as collateral under the proposed program. According to a Bloomberg article on Saturday, the operation is set to start with a $2 billion allocation. But it might grow if cryptocurrency gains more popularity.
Wall Street’s and the crypto industry’s mutually beneficial connection has grown stronger this year. And this is especially true in light of the anticipated shift in crypto policy as Trump readies himself to take the charge.
According to the report, Tether is only one of many financial backers. That would put money into the Bitcoin lending program, which is still in its beginnings. Candidates for the effort are being sought after by Cantor.
Leadership Shift
It is said that Cantor’s chief, Howard Lutnick, is planning to sell his shares in the company. This comes after being nominated as the secretary of commerce under president-elect Trump on Wednesday. After being nominated, Lutnick read from a prepared statement in which he stated his intention to do so in order “to comply with U.S. government ethics rules.”
Lutnick’s resignation from his positions at Cantor, BGC, and Newmark affects all three of those companies. Lutnick intends to transfer the firm’s Tether connection to colleagues when he gets ready to leave Cantor, which is pending approval by the Senate.
According to Bloomberg, his son Brandon is being mentioned as a potential contender. During his time as an intern in Lugano, Brandon—now at Cantor—was allegedly responsible for tallying the gold bars that support Tether Gold, a $660 million token backed by the gold.
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