Tether and Cantor Fitzgerald Plan $2B Bitcoin Loan Program

Cantor Fitzgerald is reportedly working on a new initiative to offer dollar loans backed by Bitcoin as collateral, starting with $2 billion and potentially expanding to tens of billions, Bloomberg reported.

Tether, the issuer of the world’s largest stablecoin, USDT, may participate as a financial partner in the program, although it remains in development. Cantor has begun recruiting for the initiative, which could mark a significant step in integrating digital assets with traditional finance.

The financial firm already has strong ties to Tether, earning millions annually by managing billions of dollars in U.S. Treasury bills that back USDT. Earlier this year, Cantor reportedly acquired a 5% stake in Tether for $600 million, valuing the stablecoin issuer at approximately $12 billion. This partnership has persisted even as other banks distanced themselves from Tether due to regulatory concerns.

Howard Lutnick, Cantor’s CEO and a recent nominee for Commerce Secretary under President-elect Donald Trump, plans to step down once confirmed by the Senate. Lutnick’s close ties to the incoming administration could provide Tether with political support amid heightened scrutiny. Reports suggest he may leverage his influence to mitigate potential regulatory threats, a claim Tether has neither confirmed nor denied.

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Tether has long faced allegations about the sufficiency of its reserves and compliance with anti-money laundering rules, though the company maintains it is fully backed and compliant. Beyond Tether, Lutnick has expressed strong support for Bitcoin and digital assets, urging regulators to treat Bitcoin as a commodity similar to gold or oil. This alignment between crypto and traditional finance signals a broader shift in how digital assets are integrated into mainstream economic systems.