Trump’s pick Howard Lutnick eyes $2B Bitcoin-backed lending project with Tether: Bloomberg

US President-elect Donald Trump’s nominee for Commerce Secretary, Howard Lutnick, is reportedly exploring a $2 billion bitcoin-backed lending initiative in collaboration with Tether, the issuer of the world’s largest stablecoin, according to Bloomberg.Lutnick’s financial services company, Cantor Fitzgerald, is said to be in discussions with Tether to secure funding for the project, which could expand to tens of billions of dollars, insiders revealed to Bloomberg.In an email response to Reuters, Tether stated, “Tether Investments is exploring opportunities to allocate profits generated over recent years to new ventures.” Cantor Fitzgerald did not provide a comment.Bloomberg also noted that Cantor Fitzgerald manages billions of dollars in US Treasuries for Tether, which backs the stablecoin’s value. This partnership reportedly generates tens of millions of dollars in annual revenue for Lutnick’s firm.Stablecoins like Tether are pegged to traditional currencies such as the US dollar or euro to maintain a constant value, making them popular in the cryptocurrency market.Earlier this week, Trump announced his intention to nominate Lutnick to oversee trade and tariff policies as Commerce Secretary, a role that will also give him additional responsibilities within the US Trade Representative’s office. Lutnick has been a vocal advocate for cryptocurrency adoption.The Commerce Department, a vast agency with nearly 47,000 employees, oversees diverse functions including the Census Bureau, weather forecasting, ocean navigation, and investment promotion.Trump’s pro-crypto shift Bitcoin has soared by an impressive 30% since the November 5 election, driven in large part by Donald Trump’s surprising embrace of cryptocurrency.During his campaign, Trump pledged to foster a crypto-friendly regulatory environment, establish a national Bitcoin reserve, and position the US as a leader in the digital asset space. This marked a significant shift from his earlier skepticism, influenced by extensive lobbying efforts from the crypto industry throughout the campaign.While markets have responded enthusiastically to Trump’s pro-crypto stance, questions linger over the feasibility and timeline of implementing his ambitious agenda. Investors are eagerly awaiting specific policy details that could shape the future of Bitcoin and the broader digital asset ecosystem.Since Election Day, US spot Bitcoin exchange-traded funds (ETFs) have attracted a net inflow of $4.3 billion, pushing total assets under management to approximately $93 billion, according to Bloomberg. This surge highlights the increasing mainstream acceptance of Bitcoin and optimism surrounding its potential growth under Trump’s leadership.The coming months will be critical in translating campaign promises into actionable policies, and determining whether this momentum can be sustained.The post Trump's pick Howard Lutnick eyes $2B Bitcoin-backed lending project with Tether: Bloomberg appeared first on Invezz