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Wall Street Enters BTC Loan Market: Trump's Commerce Chief's Company Cantor Offers Billion-Dollar 'BTC Collateralized Loans', Son Once Worked for Tether
Howard Lutnick, nominated by Trump as the Secretary of Commerce last week, is reportedly seeking to collaborate with leading stablecoin Tether to launch a BTC collateral loan service with an initial capitalization of $2 billion and an expected expansion to hundreds of billions of dollars. Cantor Fitzgerald, the Financial Service company he manages, is looking for Tether's support for the project. According to Bloomberg, Cantor Fitzgerald will allow customers to borrow dollars using BTC as collateral, with an initial capitalization of $2 billion, which is expected to expand to hundreds of billions of dollars. Tether is seeking to use some of the profits generated over the past few years for different opportunities. Lutnick, a BTC hardcore fan, first announced this BTC collateral loan plan at the BTC conference in July, saying that Cantor Fitzgerald, as a staunch supporter of BTC, will provide leverage to those who hold BTC, and will establish a platform to support the financing needs of BTC investors. Tether has a deep relationship with the company of Trump's Secretary of Commerce. It is worth noting that Lutnick has established a partnership with Tether through custody business, and since 2021, his Cantor Fitzgerald has been managing Tether's US debt investment portfolio, a relationship that helps Cantor earn millions of dollars each year. If Howard Lutnick is appointed as the Secretary of Commerce next year, Tether is expected to gain more political support in the Trump administration.