As a seasoned researcher with a knack for deciphering the intricate dance of politics and finance, I find myself intrigued by the prospect of Howard Lutnick, CEO of Cantor Fitzgerald, potentially serving as Trump’s Commerce Secretary while simultaneously spearheading a $2 billion Bitcoin lending project.
The Chief Executive Officer of Cantor Fitzgerald, Howard Lutnick, who was nominated as the Secretary of Commerce under President-elect Trump, has proposed a $2 billion initiative aimed at providing loans in U.S. dollars based on clients’ Bitcoins.
In the preparatory phase, Tether, the entity managing the globe’s largest stablecoin, would provide financial assistance to Cantor Fitzgerald for the purpose of backing their project.
Based on reports from The Wall Street Journal, it’s anticipated that the program could expand to a magnitude of several tens of billions.
Currently, Cantor Fitzgerald is acting as the custodian for billions of U.S. Treasuries supporting the USDT stablecoin. Moreover, the report suggests that Cantor Fitzgerald owns around 5% of Tether, which equates to an estimated worth of $600 million.
Although Cantor has started hiring for the lending program, the actual lending activities have not yet officially started.
In his upcoming move to the Commerce Department, Lutnick intends to hand over supervision of the firm’s connection with Tether to his team members. Notably, his son, Brandon Lutnick, who previously interned at Tether’s office in Lugano, Switzerland, is currently employed as a trader at Cantor.
The news arises as Trump’s transition team ponders establishing a fresh White House role focusing on cryptocurrency policy. Recently, Trump has been an outspoken advocate for digital assets. He endorsed initiatives, such as World Liberty Financial, linked with his sons. If appointed, Lutnick would supervise approximately 47,000 staff members at Commerce, handling duties ranging from the Census Bureau to trade advancement.
Despite the developments, Tether continues to face regulatory scrutiny over potential sanctions violations and anti-money laundering concerns, which the company denies. However, despite the allegations, USDT remains the largest stablecoin with over $132 billion in market cap.
Trump and Lutnick have cultivated a business-oriented friendship spanning many years, largely due to their mutual interests in finance and property development.
Over the years, Lutnick not only attended social gatherings but also organized fundraising events during Donald Trump’s presidential campaign.
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2024-11-24 17:10