(Reuters) – U.S. President Donald Trump’s pick for Commerce Secretary Howard Lutnick is in talks to deepen his financial ties with the company that operates the world’s largest stablecoin, Tether, through a $2 billion project launch to lend dollars to customers against bitcoin, Bloomberg News reported on Sunday.
Lutnick’s financial services firm Cantor Fitzgerald is discussing receiving support from Tether to help finance the project, which could potentially reach tens of billions of dollars, the report said, citing people familiar with the matter.
Tether and Cantor did not immediately respond to a Reuters request for comment outside business hours.
Tether uses Cantor to hold billions of dollars in government bonds that underpin the value of its stablecoin in a relationship that helps Lutnick’s company earn tens of millions of dollars annually, Bloomberg reported.
Earlier this week, Trump said he would nominate Wall Street CEO Howard Lutnick to lead his trade and tariff strategy as head of the Commerce Department. He would also have “additional direct responsibility” for the office of the U.S. Trade Representative.
Lutnick is known to promote cryptocurrency adoption. The Commerce Department oversees a wide range of functions with nearly 47,000 employees, from the US Census Bureau to weather forecasting, ocean navigation and investment promotion.
(Reporting by Kanjyik Ghosh; Editing by Elaine Hardcastle)
