Source: cryptoslate
Translated by: Blockchain Knight
According to Bloomberg reports last week, Cantor Fitzgerald, a financial services company and banking partner of Tether, is seeking to collaborate with the stablecoin issuer to launch a plan that allows customers to borrow dollars against BTC as collateral.
The company currently plans to open loans based on $2 billion in BTC, but it is expected to increase to hundreds of billions.
Cantor Fitzgerald has been working to raise funds for this yet-to-be-launched plan.
Relevant parties stated: "If Tether decides to cooperate, it will become one of several financial backers."
Cantor Fitzgerald has established deep business ties with Tether.
Cantor Fitzgerald's custody business can earn tens of millions of dollars annually, as it holds billions of dollars worth of U.S. Treasury bonds, which back the world's largest stablecoin, Tether (USDT).
In fact, even with many global banks refusing, Cantor Fitzgerald continues to provide banking support for Tether.
Furthermore, according to a Wall Street Journal report on November 24, Cantor Fitzgerald agreed last year to acquire about 5% of Tether's shares for approximately $600 million.
A few days ago, Trump nominated Cantor Fitzgerald CEO Howard Lutnick to be the next Secretary of Commerce, and he is also one of Trump's transition advisors.
Once confirmed by the Senate, Lutnick will resign as CEO of Cantor Fitzgerald.
With Lutnick joining the Trump administration next year, Tether is expected to gain significant political support.
According to the Wall Street Journal, Giancarlo Devasini, who is suspected to be Tether's largest shareholder, previously stated that Lutnick would use his political influence to mitigate any potential threats against Tether.
The Wall Street Journal report also mentioned that as a transition advisor, Lutnick has a say in who Trump selects for other senior government positions, including those who may regulate Tether.
Tether often finds itself in controversy, with some questioning whether Tether has sufficient reserves to maintain the 1:1 backing of USDT with the dollar.
However, Lutnick has personally vouched for Tether multiple times.
In January this year, Lutnick confirmed that Tether does indeed have sufficient reserves to support its stablecoin.
Additionally, last month the Wall Street Journal reported that Tether is under investigation in the U.S. for potentially violating sanctions and anti-money laundering regulations.
However, Tether refuted this.
Lutnick, as a well-known supporter of BTC and digital assets, stated in September this year: "Regulators should consider BTC as a commodity, just like gold or oil."
"Regulators know almost nothing about digital assets and how to regulate them."
