Trump Chooses Lutnick’s Firm for Talks to Launch $2 Billion Bitcoin Lending Project with Tether

News Summary: U.S. President-elect Donald Trump has selected Howard Lutnick as his Commerce Secretary, who is in discussions with Tether to initiate a $2 billion project aimed at lending dollars to clients secured by Bitcoin.

　　News Lead: Howard Lutnick, the President-elect Donald Trump‘s pick for U.S. Commerce Secretary, is reportedly in negotiations with Tether, the operator of the world’s largest stablecoin, to develop a $2 billion Bitcoin lending project aimed at leveraging cryptocurrency for dollar lending to clients, according to Bloomberg News.

　　News Body:

　　Howard Lutnick, the CEO of Cantor Fitzgerald, is at the forefront of potentially transformative financial initiatives as he steps into a significant role under Trump‘s administration. Bloomberg News reported on Sunday that Lutnick’s firm is talking with Tether to arrange support for an innovative project that could reshape Bitcoin usage in lending.

　　The negotiations focus on utilizing Tether's significant profits from recent years to finance a lending operation that could expand to tens of billions of dollars. Tether has indicated it is looking to explore different investment opportunities with its accumulated profits, as stated in an email response to Reuters.

　　“Tether Investments is looking to use part of the profits generated in the past years for different opportunities,” the company stated, underscoring its proactive approach to cash management. Meanwhile, Cantor Fitzgerald has historically garnered substantial revenue, estimated to be in the tens of millions of dollars, by using Tether to manage a significant portfolio of U.S. treasuries that underpin the stablecoin's value.

　　Approximately $234 billion, encompassing a variety of stablecoins, underscores their growing popularity, providing a much-needed solution to the inherent volatility of cryptocurrency markets. Specifically, stablecoins such as Tether (USDT) maintain a 1:1 peg with the U.S. dollar, ensuring marginal price fluctuations and promoting greater adoption in regulatory frameworks.

　　These developments come as Lutnick is expected to have crucial authority over trade strategy, as he also takes on additional responsibilities related to the U.S. Trade Representatives office. Historically, Lutnick has advocated for cryptocurrency adoption and played a pivotal role in Wall Street by engaging with digital asset platforms.

　　Conclusion:

　　The engagement with Tether marks a significant potential shift in how Bitcoin could be leveraged in the financial landscape, particularly as U.S. investors seek stability amid crypto volatility. By using Bitcoin as collateral for dollar loans, the upcoming initiatives under Lutnick's direction at the Commerce Department may pave the way for broader acceptance of financial products tied to cryptocurrencies. As the project develops, its implications for the lending landscape and the broader economy will be closely watched by investors and market analysts.

　　Sources:

• South China Morning Post: [Trump pick Lutnicks firm in talks with Tether about US$2 billion bitcoin lending project]
• CoinMarketCap: [Stablecoin Definition]
• Coinbase: [What is a stablecoin？]
• CoinGecko: [Top Stablecoins by Market Cap]
• Cointelegraph: [Stablecoins, Explained]
• TechTarget: [What is a Stablecoin？]
• Investopedia: [Stablecoins: Definition, How They Work, and Types]
• Galaxy Asset Management: [What is a Stablecoin？]
• River: [Stablecoin | River]