The U.S. President-elect Donald Trump has selected Howard Lutnick as his nominee for Commerce Secretary. According to a Bloomberg News Report that came out on Sunday, right now, Lutnick is in discussions and negotiations to boost his financial connections with Tether, the operator of the target stablecoin globally. It is done by initiating a $2 billion project to lend dollars to customers in exchange for Bitcoin.
The financial services company of Lutnick, Cantor Fitzgerald is said to be in talks to get support from Tether to help finance this project. This project could potentially gather around ten billion dollars, according to familiar sources.
In a response email to Reuters, Tether mentioned that the intention of Tether Investments is to make use of a portion of the profits that have been earned in recent years for different ventures. An immediate response to a request for comment from Reuters outside of business hours has not been provided by Cantor Fitzgerald.
Tether relies on Cantor to manage billions of dollars in Treasuries that underline the value of its stablecoin, creating a relationship that allows Lutnick’s firm to generate tens of millions of dollars each year, as stated in a report by Bloomberg.
Stablecoins are digital assets that are crafted to maintain a stable value and are generally backed by traditional currencies such as the U.S. dollar or Euro. Trump in an announcement last week showed his intention to nominate Lutnick to oversee his trade and tariff strategies as the head of the Commerce Department, and he would also take over additional direct responsibility for the office of U.S. Trade Representative.
Lutnick is also known for his advocacy of using cryptocurrency, he is set to take on a broad range of responsibilities within the Commerce Department, including 47,000 employees across several functions, from the U.S. Census Bureau to weather forecasting, investment promotion and ocean navigation.
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