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Cantor Fitzgerald, the global investment firm, is teaming up with Tether to launch a $2 billion 
Bitcoin lending program.
What's the scoop?
- Enabling Liquidity: The program aims to allow clients to borrow dollars using Bitcoin as collateral, with the potential to expand as crypto adoption grows.
- Political Context: The initiative comes as Cantor’s CEO, Howard Lutnick, prepares to assume his role as U.S. Commerce Secretary under President-elect Donald Trump. Lutnick has announced plans to divest his interests in Cantor to comply with federal ethics rules.
- Existing Relationship: Cantor already manages most of Tether's $132 billion in reserves and holds a 5% stake in the stablecoin issuer valued at $600 million.
Bankless take:
Cantor Fitzgerald's deepening involvement with 
Tether highlights the quickly evolving ties between Wall Street and crypto. The partnership signals increased confidence in Bitcoin-backed financial instruments and positions Cantor to benefit from the anticipated pro-crypto policies of the incoming Trump administration. If successful, the program would open the floodgates for more Bitcoin-backed lending at an institutional scale.
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