Cantor Fitzgerald is reportedly planning a $2 billion Bitcoin-backed lending program utilizing Tether. This initiative allows clients to borrow dollars using Bitcoin as collateral, with the potential for expansion as cryptocurrency adoption grows. The program is still in its early stages and aims to foster deeper ties between Wall Street and the crypto industry, particularly relevant as Cantor's CEO Howard Lutnick prepares for his new role under President Trump. Lutnick, who will comply with U.S. government ethics rules by stepping down, plans to transfer the firm's Tether relationship to colleagues. Cantor already manages substantial assets for Tether, earning significant fees, and holds a 5% stake in Tether valued at $600 million. The relationship has faced scrutiny from regulators due to concerns over Tether's reserves and offshore operations, particularly following a settlement with the New York Attorney General. As regulatory attention on stablecoins increases, Cantor's developments may influence the future of stablecoin regulations in the U.S.

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