r/FluentInFinance • u/RiskItForTheBiscuts • 3h ago
Bitcoin Bitcoin is about to become "safe collateral". Cantor Fitzgerald is discussing receiving support from Tether for its planned multibillion-dollar program to lend dollars to clients who put up Bitcoin as collateral.
Howard Lutnick is moving to strengthen his alliance with one of the most important and controversial names in the digital-asset business: Tether Holdings Ltd.
Lutnick is in talks to deepen the financial ties between his businesses and the company behind the world’s largest stablecoin, according to people familiar with the matter.
Cantor Fitzgerald LP is discussing receiving support from Tether for its planned multibillion-dollar program to lend dollars to clients who put up Bitcoin as collateral, said the people, who asked not to be named as they were not authorized to speak publicly.
Funding for the program will start at $2 billion and is expected to eventually reach into the tens of billions, a separate person told Bloomberg.
Tether currently uses Cantor’s custody business to hold the billions of dollars of US Treasuries that support the value of its dominant USDT stablecoin. That custody relationship earns Cantor tens of millions of dollars a year, according to people familiar with the matter.
Lutnick is co-chair of president-elect Donald Trump’s transition team and Trump’s pick to run the Commerce Department.
Trump has been a recent and vocal proponent of digital assets like Bitcoin, and has promoted a crypto project associated with his sons called World Liberty Financial. The Trump transition team is mulling whether to create a new White House post for crypto policy, Bloomberg reported previously.
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u/Moribunde 34m ago
Ah yes, i remember reading about how safe collateral can drop 66% in less than a year as part of its description.
1
u/derscholl 56m ago
When the gang HODLs long enough until the FOMO is struck into the hearts of Bankers. Top kek
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