Cantor Fitzgerald partners with Tether for a Bitcoin lending program

Cantor Fitzgerald, one of the  players in global financial services, plans to launch a multibillion-dollar bitcoin-backed lending program, potentially reshaping crypto-backed financing.

The program will allow clients to borrow U.S. dollars using Bitcoin (CRYPTO:BTC) as collateral, with initial funding set at $2 billion and projections aiming for expansion into the tens of billions.

The initiative involves close collaboration with Tether Holdings Ltd., the issuer of the USDT stablecoin.

Cantor already holds a 5% stake in Tether, valued at approximately $600 million, further deepening their strategic relationship.

This lending program builds on Cantor Fitzgerald’s July announcement to create a Bitcoin financing platform designed to meet the needs of investors seeking leverage on their bitcoin holdings.

“We are excited to help unlock Bitcoin’s full potential and continue bridging the gap between traditional finance and digital assets," according to Chairman and CEO Howard Lutnick in expressing his enthusiasm for the initiative.

Lutnick’s appointment as Secretary of Commerce under President-elect Donald Trump signals potential for broader crypto-friendly policies.

Lutnick has likened Bitcoin to gold, advocating for its free global trade and its recognition as a commodity rather than a security.

Trump’s administration appears poised to adopt a pro-cryptocurrency agenda, with discussions around establishing the first-ever White House position dedicated to cryptocurrency policy.

The administration is also exploring the creation of a strategic national Bitcoin reserve, positioning Bitcoin as a potential tool for managing the U.S. national debt, which currently stands at $36 trillion.

Cantor’s move aligns with Trump’s vision to make the US a global leader in cryptocurrency, reflecting a shift toward federal support for digital assets.

As Cantor expands its Bitcoin financing platform, the firm is positioning itself as a bridge between traditional finance and the rapidly evolving world of cryptocurrency.

This collaboration between Cantor Fitzgerald and Tether underscores Wall Street’s growing interest in digital assets and its efforts to integrate them into mainstream financial ecosystems.

The success of this program could mark a turning point in crypto-backed lending, influencing the broader adoption of Bitcoin and reinforcing its role in the global economy.

At the time of reporting, Bitcoin price was $97,775.64.