The potential collaboration could reshape crypto lending, blending Wall Street power with blockchain technology.
Cantor Fitzgerald, an American financial services firm led by Chairman and CEO Howard Lutnick, is reportedly exploring a major collaboration with Tether to launch a $2 billion Bitcoin-backed lending program.
According to Bloomberg, the project, initially unveiled in July this year during a Bitcoin Conference in the United States, aims to provide US dollar loans using Bitcoin BTC $88 163 24h volatility: 2.7% Market cap: $1.76 T Vol. 24h: $49.69 B as collateral and could expand significantly in scale over time.
A Potential Partnership to Increase Bitcoin’s Role in Institutional Finance
Lutnick revealed at the time that the project would launch with “$2 billion in lending and increase the facility in $2 billion tranches as needed”. The move is part of the company’s efforts to “welcome Bitcoin into the financing family of the global financial markets.”
Following the unveiling in July, the company is now making headway with the potential launch. In a separate report by Wall Street Journal on November 24, the financial services firm is in talks with Tether’s Giancarlo Devasini about the Bitcoin-backed lending program.
While neither party has confirmed the specifics of the potential partnership, Tether acknowledged the possibility of new ventures in an emailed statement to Reuters, stating:
“Tether Investments is looking to use part of the profits generated in the past years for different opportunities.”
The potential alliance follows Cantor Fitzgerald’s acquisition of a 5% stake in Tether over the past year, according to The Wall Street Journal, a deal valued at approximately $600 million.
Apart from the equity investment, the two companies already share a business relationship, with Tether reportedly holding billions of dollars in US Treasury securities through Cantor. These holdings back Tether’s USDT stablecoin and generate significant revenue for Cantor Fitzgerald, estimated in the tens of millions annually.
Regulatory Headwinds for Crypto Lending
The 5% stake in Tether underscores Lutnick’s deepening ties to the crypto sector as he prepares for a more prominent political role. The incoming Trump administration has announced plans to nominate Lutnick as Commerce Secretary, with additional oversight responsibilities for the US Trade Representative’s office.
The Cantor Fitzgerald boss, a known advocate for innovation in financial markets, also serves as co-chair of Donald Trump’s transition team.
Meanwhile, the proposed Bitcoin lending initiative would arrive at a time when US regulators are cracking down on crypto lending platforms. Authorities have labeled many such services as illegal, citing consumer protection concerns. This adds a layer of complexity for Cantor and Tether as they aim to navigate the evolving regulatory landscape while introducing innovative financial products.
If finalized, the partnership would represent one of the most significant Bitcoin-focused lending initiatives by a traditional financial institution, blending the expertise of a Wall Street giant with the reach of a controversial but influential crypto company.
For Lutnick and Cantor Fitzgerald, the move signals a strategic bet on Bitcoin’s future as a core financial asset, even amid heightened regulatory scrutiny.
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