Cantor Fitzgerald to use Bitcoin $BTC #as collateral via Tether
Cantor Fitzgerald continues to make giant leaps toward embracing cryptocurrency. The investment firm has now proposed a $2 billion Bitcoin-backed program through Tether, the world's largest stablecoin issuer.
By relying on Tether's capability and stability in the blockchain, Bitcoin could be used as collateral. This will enhance the adoption of digital assets as they interact with traditional financial systems.
Further, with Bitcoin soon to hit the 100K mark, this program may see increased adoption, especially with institutional players. It will help clients make the most out of Bitcoin price appreciation and increase functionality. Apart from Tether, the program would likely be availing the services of other financial contributors. Cantor is already in the process of recruiting members to help in the program.
On Sunday, the firm had reportedly purchased about 5% stake worth over $600 million in Tether. This acquisition not only improves Tether’s capitalization but also enhances its position amid stringent regulatory guidelines. Further, the CEO of Cantor Fitzgerald, Howard Lutnick, will soon be taking the reins as Commerce Secretary under Trump. This would strengthen Tether under his political power.
