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Cantor Fitzgerald, Tether Prep $2B Bitcoin Lending Collab

Wall Street firms are set to enhance liquidity by borrowing dollars against Bitcoin, signaling a shift in crypto finance. Discover the details now!
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Nov 25, 2024 • 1 min read

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.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Published in Bankless

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