Cantor Fitzgerald launches $2B Bitcoin financing project, with Tether support. A new step towards bridging traditional finance and crypto-backed loans - IcoHolder.

Cantor Fitzgerald, the financial services firm headed by Howard Lutnick, is moving forward with a significant $2 billion Bitcoin financing project. The initiative, which could eventually scale into tens of billions, aims to offer loans in dollars, using Bitcoin as collateral. The project has attracted the attention of Tether, the issuer of the USDT stablecoin, which may help fund the endeavor.

The financing program, which could change the landscape of cryptocurrency-backed lending, will begin with $2 billion, with potential for further growth. Cantor Fitzgerald, known for its traditional finance services, is hoping to bridge the gap between conventional financial institutions and digital assets.

Lutnick, who is also a prominent figure in US politics as President-elect Donald Trump’s nominee for Commerce Secretary, is reportedly preparing to transfer Cantor Fitzgerald’s relationship with Tether to his colleagues. This partnership has been central to Cantor’s custody services, particularly in managing the US Treasuries that serve as reserves for Tether’s USDT stablecoin.

In addition to the financing project, Cantor Fitzgerald is expected to receive support from Tether in the form of investments. According to a spokesperson for Tether, the stablecoin issuer plans to use part of its profits from recent years to fund various new opportunities, including Cantor’s project.

Cantor’s bitcoin financing initiative was initially announced in June and aims to unlock Bitcoin’s potential as a usable asset in traditional finance. With significant backing from Tether, the project marks another important step in the increasing integration of cryptocurrency with established financial systems.

The partnership between Cantor Fitzgerald and Tether also extends to ownership, with Cantor reportedly investing up to $600 million for a 5% stake in Tether. Despite the firm’s ongoing scrutiny, including claims of non-compliance with anti-money laundering (AML) laws, Tether’s market dominance continues to grow, with its supply of USDT increasing by 10% in November, surpassing $132 billion.

With a pro-crypto administration coming into power, industry experts speculate that regulatory scrutiny of Tether may begin to ease, paving the way for more innovative partnerships like this one.

Conclusion: Cantor Fitzgerald’s $2 billion Bitcoin lending project, supported by Tether, is positioning itself to be a major player in the growing intersection of traditional finance and cryptocurrency. As the partnership progresses, it could signal a new era for Bitcoin-backed financial products.