President-elect Donald Trump's pick for the Commerce Department is strengthening his company's link with Tether, the firm behind the world's biggest stablecoin. Howard Lutnick, CEO of Cantor Fitzgerald, is in talks to get support from Tether for a new program allowing clients to borrow using Bitcoin as collateral. This initiative starts with $2 billion and could scale up to tens of billions. Cantor has also invested in Tether, securing a 5% stake valued up to $600 million. If confirmed by the Senate, Lutnick will step down from his positions at Cantor and related firms, handing control to his colleagues. Lutnick's son, Brandon, has worked at Cantor and interned with Tether, counting gold bars in Switzerland. Meanwhile, Lutnick is a key figure in Trump's transition team, shaping the new administration's crypto-friendly policies.

Tether has faced controversy for its use by criminals and is under investigation for sanction and money-laundering violations. The FBI is probing a money laundering organization using crypto brokers linked to Mexican cartels. Tether denies aiding criminal activities, asserting that it collaborates with law enforcement to combat illegal activities.

CANTOR FITZGERALD

Crypto Ties: Trump Aide's Firm and Tether Get Closer

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