EddieJayonCrypto
25 Nov 24
U.S. financial services firm Cantor Fitzgerald is reportedly in talks with Tether to launch a multibillion-dollar Bitcoin-backed lending program. The program would allow clients to borrow dollars using Bitcoin as collateral. The initiative is still in its early stages and is expected to involve mult...
Cantor Fitzgerald, a U.S. financial services firm, is in discussions with Tether to launch a multibillion-dollar Bitcoin-backed lending program. This program would enable clients to borrow dollars using Bitcoin as collateral, marking a deeper connection between Wall Street and the crypto industry. Cantor, which already manages most of Tether's $132 billion assets, also holds a 5% stake in Tether valued at $600 million.
The potential regulatory changes in the U.S. could impact stablecoin issuers like Tether, as bipartisan senators have introduced a framework for stablecoin regulation to protect consumers. This legislation aims to ban offshore operations for stablecoins pegged to the U.S. dollar, which could significantly affect Tether's operations.
The U.S. Treasury Department has requested new powers to block stablecoin transactions linked to illicit activities, adding to the regulatory scrutiny facing stablecoin issuers. Tether has refuted claims of being a preferred choice for money launderers and continues to work with law enforcement officials to mitigate illicit activities involving its stablecoin.