Tether and Cantor Fitzgerald Explore Collaboration for Bitcoin Lending Program
Partnership Discussions
Cantor Fitzgerald’s chairman, Howard Lutnick, and Tether’s Giancarlo Devasini are reportedly in discussions about a groundbreaking lending initiative that will enable clients to use Bitcoin as collateral for loans, according to the Wall Street Journal. This ambitious program, initially announced in July, aims to launch with a robust fund of $2 billion, with an eye toward scaling into the tens of billions in the future. This potential partnership is a key development in the ongoing relationship between Cantor Fitzgerald and Tether, who have been collaborating since 2021. The trading firm has been responsible for safeguarding Tether’s U.S. Treasury assets and holds a 5% stake in the stablecoin issuer, currently valued at around $600 million.Tether’s Position in the Market
Tether stands as the issuer of the world’s leading stablecoin, which is pegged to the U.S. dollar and has a market cap of approximately $132.76 billion, according to CoinMarketCap. However, the company has faced scrutiny over its connections to illicit activities such as scams, money laundering, and sanctions evasion. Recent reports indicate that U.S. authorities are investigating Tether for possible violations of anti-money laundering laws and sanctions. In defense of its reputation, Tether has condemned these allegations as “irresponsible,” insisting that it has consistently worked with law enforcement to address and prevent misuse of its platform.Regulatory Landscape Changes
Under President Biden, the regulatory landscape for cryptocurrency businesses has become more stringent. Nevertheless, a potential shift could be on the horizon as the incoming Trump administration might adopt a more relaxed approach. President-elect Trump and his family are pursuing various opportunities in the cryptocurrency sector, including World Liberty Financial. Lutnick, a prominent voice in the cryptocurrency realm, has been involved with Trump’s transition team and may significantly shape future crypto regulations if he is confirmed as head of the U.S. Department of Commerce. Should that happen, he plans to step down from his roles at Cantor Fitzgerald, BGC, and Newmark to concentrate on this new position. “`htmlSource: Coindesk.com
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