Last week, Howard Lutnick, who was nominated by Trump as Secretary of Commerce, was reported yesterday that his financial services company Cantor Fitzgerald is seeking to collaborate with stablecoin leader Tether to launch a Bitcoin collateral loan service with an initial funding scale of $2 billion, which could expand to hundreds of billions in the future. (Background: Trump nominates Bitcoin enthusiast Howard Lutnick as Secretary of Commerce; will the new SEC chair be a crypto-friendly lawyer?) (Supplementary background: Tether wants to be a bank! Plans to offer billions of dollars in credit to commodity traders, will they give USDT?) According to a Bloomberg report yesterday (24), Trump’s newly nominated Secretary of Commerce Howard Lutnick’s Wall Street bond trading giant Cantor Fitzgerald is negotiating with Tether, the issuer of the USDT stablecoin, and both parties are expected to collaborate on launching Bitcoin collateral loan services. Cantor Fitzgerald will allow customers to borrow US dollars using Bitcoin as collateral, with an initial funding scale of $2 billion, expected to expand to hundreds of billions. The company is seeking Tether to fund this plan. In response to Reuters, Tether stated, "Tether Investments is seeking to use part of the profits generated over the years for various opportunities." Previously, Lutnick announced this Bitcoin collateral loan plan for the first time at the Bitcoin conference in July, where he stated that Cantor Fitzgerald, as a firm supporter of Bitcoin, would provide leverage for Bitcoin holders and establish a platform to support the financing needs of Bitcoin investors, with an initial phase offering $2 billion in loans. Tether has a deep relationship with Trump’s Secretary of Commerce. It is worth mentioning that Lutnick has established deep cooperation with Tether through custodial services, and since 2021, his Cantor Fitzgerald has managed Tether’s U.S. Treasury bond investment portfolio, which helps Cantor earn tens of millions of dollars annually. According to Tether's latest reserve report for the third quarter of 2024, Tether's asset reserves amount to $125.5 billion, of which the amount directly and indirectly held in U.S. Treasury bonds reaches $102.5 billion, making Tether one of the top 18 holders of U.S. Treasury bonds globally. Over the weekend, the Wall Street Journal revealed that Cantor Fitzgerald has reached an investment agreement with Tether in 2023, acquiring a 5% stake in Tether, which was valued at up to $600 million at the time of the agreement. If Howard Lutnick is successfully appointed as Secretary of Commerce next year, Tether is expected to gain more political support in the Trump administration. Related Reading: Is USDT too big to fail? Wall Street bond trading giant Cantor acquires 5% stake in Tether. Bitcoin enthusiast Howard Lutnick set to become Secretary of Commerce, will be in charge of tariffs and trade policy, and he is currently co-chair of Trump’s transition team and has announced he will resign from his position at Cantor Fitzgerald. Lutnick has also publicly expressed confidence in Tether's financial stability multiple times and describes himself as a "loyal fan" of Bitcoin, comparing Bitcoin to gold and arguing that regulators should classify Bitcoin as a commodity rather than a security, similar to gold and oil. Recently, the cabinet list released by Trump has repeatedly featured crypto-friendly officials, in addition to Howard Lutnick, there is also hedge fund manager Scott Bessent nominated as Treasury Secretary, who supports Trump in establishing a national strategic reserve for Bitcoin and reducing regulations on cryptocurrencies. There are also Republican congressmen reporting that Hester Peirce, a SEC commissioner dubbed “Crypto Mom” by the community, will serve as acting chair of the SEC after Gary Gensler resigns in January next year. After taking office, it is said that his son will take over the business. Currently, Howard Lutnick is solely the CEO of Cantor, and after taking office, he plans to delegate the future focus of Cantor's Tether business to his colleagues. Reports indicate that the most favorable candidate is likely to be his son, Brandon Lutnick. Brandon Lutnick previously interned in Tether's Swiss operations and is currently working at Cantor. It is reported that during his internship in Lugano, he participated in Tether Gold's $660 million gold-backed token project, indicating he is familiar with Tether's token issuance-related business. It is foreseeable that in the next four years of Trump's term, U.S. cryptocurrency regulation is actively advancing in a friendly supportive direction. Related Reports: Is Trump going to launch an exchange? His media company is reportedly acquiring the crypto platform Bakkt, with shares skyrocketing 162% in a day. Tether completes $45 million USDT oil transaction, targeting the $10 trillion trade finance market. Trump nominates Bessent as U.S. Treasury Secretary; what is his stance on cryptocurrencies? "Wall Street ventures into Bitcoin lending, Trump’s Commerce Secretary's company Cantor offers billions in 'BTC collateral loans', son previously worked at Tether." This article was first published on BlockTempo (the most influential blockchain news media).