Wall Street powerhouse Cantor Fitzgerald is preparing to launch a multibillion-dollar lending program using bitcoin as collateral, with backing from stablecoin issuer Tether Holdings. This initiative could reshape crypto-backed financing and further integrate digital assets into mainstream finance.
Program Details: $2 Billion Initial Funding, Scaling to Tens of Billions
According to Bloomberg, citing sources familiar with the discussions, Cantor Fitzgerald is seeking Tether's support for the lending program, which would allow clients to borrow dollars by pledging bitcoin as collateral. The initial funding is set at $2 billion, with projections of expansion into the tens of billions. Cantor previously announced in July 2024 its plans to launch "a bitcoin financing business to provide leverage to investors who hold bitcoin," also starting with $2 billion. Chairman and CEO Howard Lutnick emphasized at the time: "Cantor Fitzgerald arranges and finances vast amounts of securities and commodities and, as strong supporters of bitcoin, will now build an incredible platform to support bitcoin investors’ financing needs." He added: "We are excited to help unlock bitcoin’s full potential and continue bridging the gap between traditional finance and digital assets."
Tether Partnership and 5% Stake
Tether already collaborates with Cantor Fitzgerald through its custody services. Additionally, Cantor has acquired a 5% stake in Tether, valued at approximately $600 million, according to the Wall Street Journal. This close partnership provides a solid foundation for the new lending initiative.
Lutnick's Crypto Stance and Political Appointment
Howard Lutnick, a prominent Wall Street figure and co-chair of President-elect Donald Trump's transition team, has been nominated by Trump as Secretary of Commerce. Lutnick supports broad tariffs and cryptocurrency, has compared bitcoin to gold, and advocated for its unrestricted global trade. At a recent bitcoin conference, he emphasized that bitcoin should be treated as a freely traded commodity. If confirmed as Commerce Secretary, Lutnick's stance on cryptocurrency could shape regulatory frameworks, influencing innovation and market confidence. His Wall Street experience and crypto advocacy may drive policies that balance growth, regulation, and competitiveness, potentially positioning the U.S. as a leader in the digital economy.
Trump's Pro-Crypto Agenda
President-elect Donald Trump is actively shaping a pro-cryptocurrency agenda as he prepares to assume office. His transition team is considering establishing the first-ever White House position dedicated to cryptocurrency policy. Additionally, Trump has proposed creating a strategic national bitcoin reserve to manage and potentially reduce the U.S. national debt, which stands at $36 trillion. These initiatives aim to position the United States as a global leader in the cryptocurrency sector, reflecting a significant shift in federal oversight and support for digital assets.