Howard Lutnick to Launch $2 Billion Tether-Backed Lending Initiative

• Howard Lutnick, a long-time cryptocurrency advocate, was recently appointed as the future Commerce Secretary by President-Elect Donald J. Trump.
• Lutnick is negotiating a partnership with Tether to release a new lending program where borrowers can use Bitcoin as collateral.
• During the campaign, Trump mentioned a plan to use stablecoins pegged to the U.S. Dollar to ensure the greenback remains dominant.

Long-time cryptocurrency advocate, Howard Lutnick is one of the most active digital assets today. Only a couple of days ago, President-Elect Donald J. Trump appointed the Cantor Fitzgerald CEO as the future Commerce Secretary in the United States. 

A firm Trump supporter throughout the campaign — Howard Lutnick recently served as co-chair of Trump's transition team. During the race, the billionaire was a firm Republican backer — donating tens of millions of dollars to the GOP.

Now, Lutnick is moving towards a groundbreaking deal with stablecoin issuer Tether. Recent reports by David Pan at Bloomberg revealed that the Cantor Fitzgerald CEO is negotiating a partnership with Tether to release a new lending program where borrowers can put up Bitcoin as collateral. 

The program is expected to launch with a $2 billion investment and is expected to grow exponentially over the years. Interestingly — this isn’t the first time Lutnick and Tether do business. 

In fact, Tether uses his company’s custody business to hold its multiple billion-dollar reserves — guaranteeing the value of USDT remains dollar-pegged. 

During the campaign — Donald Trump touched on the cryptocurrency subject for multiple times. Aside from the eventual Bitcoin praises, the future President also mentioned a plan to use stablecoins pegged to the U.S. Dollar as a way to ensure that the greenback remains the dominant force. 

If those rumors are true, the future Trump presidency could have a lot to uncover regarding stablecoin operations in the U.S.