(Reuters) -U.S. President-elect Donald Trump’s pick for Commerce secretary, Howard Lutnick, is in talks to deepen his financial ties with the company operating the world’s largest stablecoin, , by launching a $2 billion project to lend dollars to clients against bitcoin, Bloomberg News reported on Sunday.

Lutnick’s financial services firm, Cantor Fitzgerald, is discussing receiving support from Tether to help fund the project, which could potentially reach tens of billions of dollars, the report said, citing people familiar with the matter.

“Tether Investments is looking to use part of the profits generated in the past years for different opportunities”, Tether said in an e-mailed response to Reuters.

Cantor Fitzgerald did not immediately respond to a Reuters request for comment outside business hours.

Tether uses Cantor to hold billions of dollars worth of Treasuries that support the value of its stablecoin in a relationship that helps Lutnick’s firm earn tens of millions of dollars annually, Bloomberg reported.

Stablecoins are digital tokens designed to keep a constant value, and are backed by traditional currencies such as the U.S. dollar or euro.

Earlier this week, Trump said he would nominate Lutnick to lead his trade and tariff strategy as head of the Commerce Department. Lutnick would also have “additional direct responsibility” for the U.S. Trade Representative’s office.

© Reuters. Tether logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Lutnick has been known to promote the adoption of cryptocurrency.

The Commerce Department oversees a sprawling array of functions with nearly 47,000 employees, from the U.S. Census Bureau to weather forecasting, ocean navigation and investment promotion.




Source link

Best Brokers

Unmatched trading fees, generous bonuses, top notch Regulation Frame.

T&Cs Apply

Risk disclosure: All investments involve a degree of risk of some kind. Trading financial derivative products comes with a high risk of losing money rapidly due to leverage.

Top-Tier Regulations. Unmatched Spreads and Commissions. Trading View is available.

T&Cs Apply

Financial Spread Trades and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.7% of retail investor accounts lose money when trading CFDs with this provider.

Modern and Intuitive Interfaces, Solid Regulatory Frame, and excellent Trading Fees.

T&Cs Apply
Risk warning: Trading derivatives is highly speculative, carries an inherent risk of loss and is not suitable for all investors. Before trading, you are strongly advised to read and ensure that you understand the relevant risk disclosures and warnings.

Highly Regulated. Low Spreads and Commissions. Vast Account Options.

T&Cs Apply

Risk Warning: Trading derivatives carries significant risks. It is not suitable for all investors and if you are a professional client, you could lose substantially more than your initial investment.