Trump’s Commerce Pick Howard Lutnick to Spearhead $2 Billion Tether-Backed Bitcoin Lending Initiative

Howard Lutnick, CEO of Cantor Fitzgerald and President-elect Donald Trump’s nominee for Commerce Secretary, is reportedly gearing up to launch a groundbreaking $2 billion lending program backed by Bitcoin and Tether. The initiative aims to provide dollar-based loans to clients using Bitcoin as collateral, marking a significant foray into the intersection of traditional finance and cryptocurrency.

Cantor Fitzgerald, a prominent financial services firm, plans to partner with Tether, the issuer of the USDT stablecoin, to secure funding for the program. According to reports from The Wall Street Journal, the ambitious project could scale to tens of billions of dollars in lending activity, solidifying the growing influence of digital assets within the global financial ecosystem.

Cantor Fitzgerald and Tether: A Strategic Partnership

Cantor Fitzgerald is no stranger to Tether, serving as the custody provider for billions in U.S. Treasuries backing the USDT stablecoin. This strategic relationship has reportedly expanded further, with Cantor acquiring a 5% ownership stake in Tether, valued at approximately $600 million.

The proposed lending program represents the next phase of this collaboration. While Cantor has begun staffing for the initiative, formal operations are yet to commence. This endeavor could establish a new financial infrastructure, allowing clients to unlock liquidity against their Bitcoin holdings without liquidating their assets.

Howard Lutnick’s Role and Transition to Commerce

As Lutnick prepares to take on his role as Commerce Secretary, he plans to delegate oversight of Cantor Fitzgerald’s relationship with Tether to his colleagues. His son, Brandon Lutnick, who has previous experience interning at Tether’s office in Lugano, Switzerland, currently works as a trader at Cantor, further strengthening the ties between the two entities.

If confirmed, Lutnick will oversee a vast portfolio at the Commerce Department, which includes managing 47,000 employees across functions such as the Census Bureau, international trade promotion, and technology policy.

A Crypto-Friendly Administration?

Trump’s emerging stance as a proponent of digital assets further amplifies the significance of this development. His transition team is reportedly considering establishing a dedicated White House position focused on crypto policy. Over the years, Trump has shifted from skepticism to vocal support of blockchain innovations. He has promoted ventures such as World Liberty Financial, associated with his sons, signaling a potential crypto-friendly direction for his administration.

Lutnick’s $2 billion project aligns with this broader vision. If successful, it could position the U.S. as a leader in integrating cryptocurrency into mainstream financial services, with Cantor Fitzgerald and Tether at the forefront of this transformation.

Challenges on the Horizon

Despite its ambitious scope, the initiative faces potential hurdles. Tether continues to draw scrutiny from regulators over allegations of sanctions violations and anti-money laundering deficiencies—claims the company has repeatedly denied. Nevertheless, Tether remains the dominant stablecoin, boasting a market capitalization exceeding $132 billion, underscoring its central role in the crypto ecosystem.

Trump and Lutnick’s longstanding relationship, shaped by shared interests in finance and real estate, adds a layer of trust and collaboration to this endeavor. Lutnick, who hosted fundraisers during Trump’s previous presidential campaign, now stands poised to influence both the U.S. economy and its approach to digital assets.

A New Era for Crypto-Backed Finance?

The convergence of crypto and traditional finance is accelerating, with Cantor Fitzgerald’s lending program potentially setting a precedent. By leveraging Bitcoin’s collateral potential and Tether’s liquidity, the project could redefine institutional lending practices and pave the way for broader crypto adoption.

As the initiative unfolds, it will likely attract significant attention from market participants, policymakers, and regulators alike. If successful, this $2 billion venture could mark a turning point in legitimizing cryptocurrency-backed financial products on a global scale.