Trump pal Lutnick to expand $2b Tether, Bitcoin lending: WSJ

President-elect Trump’s nominee for Commerce Secretary, Cantor Fitzgerald CEO Howard Lutnick, wants to launch a $2 billion project to lend dollars to customers in exchange for Bitcoin.

As part of the setup, Cantor Fitzgerald will receive support from Tether, the company behind the world’s largest stablecoin, to help fund the initiative.

The proposed program is expected to reach tens of billions, according to the Wall Street Journal.

Cantor Fitzgerald currently serves as the custodian for billions of dollars in U.S. Treasury securities backing Tether’s USDT stablecoin. The report also states that Cantor purchased approximately 5% of Tether’s shares worth $600 million.

Cantor has started hiring for the loan program, but formal lending has not yet begun.

As Lutnick prepares to move to the Commerce Department, he plans to hand over oversight of the firm’s Tether relationship to his colleagues. His son, Brandon Lutnick, who previously interned at Tether’s Lugano, Switzerland office, now works as a Cantor trader.

This development comes as Trump’s transition team considers creating a new White House position for crypto policy. Trump has recently emerged as a vocal digital asset supporter. He supported projects involving his sons, including World Liberty Financial. If confirmed, Lutnick would oversee approximately 47,000 employees at Commerce and manage functions from the Census Bureau to trade promotion.

Despite the developments, Tether continues to face regulatory scrutiny over potential sanctions violations and anti-money laundering concerns, which the company denies. However, despite the claims, USDT remains the largest stablecoin with a market value exceeding $132 billion.

Trump and Lutnick have maintained a professional and friendly relationship over the years, shaped primarily by their joint involvement in the financial and real estate industries.

In addition to attending events over the years, Lutnick also hosted fundraisers for Trump during his presidential campaign.