Howard Lutnick is strengthening his alliance with one of the most important and controversial names in the digital asset business: Bondage.
According to people familiar with the matter, Lutnick is negotiating to deepen the financial relationship between his business and the company behind the world’s largest Stablecoin.
Cantor Fitzgerald LP is discussing receiving support from Tether’s support for the billion-dollar program to lend to customers who are serving as Bitcoin as collateral, who said they are not allowed to be named, Because they have no right to speak publicly.
A separate person told Bloomberg that the funding for the program will start at $2 billion (about Rs 16,853 crore) and is expected to eventually reach billions.
Tether currently uses Cantor’s custody business to hold billions of dollars in U.S. Treasury bonds to support the value of its major USDT Stablecoin. According to people familiar with the matter, this guardianship relationship makes tens of millions of dollars a year.
Lutnick is the co-chair of President-elect Donald Trump’s transition group and the draft pick for Trump to run the Commerce Department.
Trump has been the latest supporter of digital assets such as Bitcoin and has promoted crypto projects related to what his son calls World Free Finance. Bloomberg previously reported that the Trump transition team is considering whether to create a new White House post for crypto policy.
Although Cantor has been trying to hire employees to start the program, borrowing has not officially begun. One of the people said that if Tether was involved, the cryptocurrency company could be one of several financial contributors.
A Cantor spokeswoman declined to comment. Comments with Tether executives are not immediately available outside of normal business hours.
Tether faces scrutiny from governments, including the United States, for possible violations of sanctions and anti-money laundering rules. The company denied the claims.
The Wall Street Journal reported on Saturday that Lutnik also reached a deal to invest in Tether, adding that Cantor’s shares are worth up to $600 million (approximately Rs 5056 crore), About five Percents ownership.
According to two people, Lutnick was preparing to hand over to his colleagues when he moved to run the Ministry of Commerce, and he handed over his relationship with Tether to his colleagues. His son Brandon Lutnick worked as a businessman in Cantor and previously interned in Lugano, Switzerland.
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