Trump’s Lutnick Eyes $2 Billion Bitcoin Lending Deal with Tether – Major Move!

On November 25, 2024, U.S. President-elect Donald Trump’s nominee for Commerce Secretary, Howard Lutnick, is reportedly negotiating a $2 billion project with Tether, the operator of the world’s largest stablecoin. The initiative aims to lend dollars to clients against bitcoin, as reported by Bloomberg News.

Lutnick’s firm, Cantor Fitzgerald, seeks to enhance its financial ties with Tether, potentially leading to a project worth tens of billions of dollars. Tether confirmed its interest in utilizing past profits for new opportunities.

Howard Lutnick, known for promoting cryptocurrency adoption, has been nominated by President-elect Trump to lead the Commerce Department, which oversees a wide range of functions across nearly 47,000 employees. The department’s responsibilities include trade, tariffs, and the U.S. Trade Representative’s office.

Cantor Fitzgerald is exploring a partnership with Tether to support the proposed lending project. Tether, which operates the largest stablecoin, has a financial relationship with Cantor Fitzgerald, allowing it to hold billions in Treasuries that back its stablecoin. This arrangement reportedly generates tens of millions of dollars annually for Lutnick’s firm.

Stablecoins are digital assets designed to maintain a stable value by being pegged to traditional currencies like the U.S. dollar. Tether’s involvement in this project highlights the growing intersection of traditional finance and cryptocurrency, as firms seek to leverage digital assets for innovative financial solutions.

The discussions between Lutnick and Tether signify a notable development in the financial services sector, particularly as cryptocurrency continues to gain traction. If successful, this project could reshape lending practices in the context of digital currencies.