Financial services firm Cantor Fitzgerald, which serves as Tether’s banking partner, is looking to work with the stablecoin issuer on a program that will allow clients to borrow dollars against Bitcoin as collateral, Bloomberg reported on Sunday.

While the firm will start lending against Bitcoin with $2 billion, it is expected to increase to tens of billions. Cantor Fitzgerald has been trying to recruit for the program that is yet to be officially launched. If Tether decides to collaborate, it will be one of several financial contributors, anonymous sources familiar with the matter told Bloomberg.

Cantor Fitzgerald already has deep business ties with Tether. Its custody business earns fees of tens of millions of dollars per year for holding the billions of dollars worth of U.S. treasury bills that back the world’s largest stablecoin Tether (USDT). In fact, Cantor Fitzgerald has continued to provide banking support to Tether even as several banks around the world have refused.

Furthermore, The Wall Street Journal reported on Nov. 24 that Cantor Fitzgerald agreed to acquire a 5% stake in Tether for around $600 million in the past year.

Earlier this week, President-elect Donald Trump nominated Cantor Fitzgerald CEO Howard Lutnick, who also serves as one of Trump’s transition advisers, to be the next Commerce Secretary. Lutnick will resign as CEO of Cantor Fitzgerald once he receives senate confirmation.

With Lutnick joining Trump’s administration next year, Tether can be expected to receive significant political support. According to The Wall Street Journal, Giancarlo Devasini, who is suspected of being the largest Tether shareholder, previously said that Lutnick will use his political influence to neutralize any potential threats against Tether.

The WSJ report further claims that as transition adviser, Lutnick already has a say in who Trump selects for other top government roles, including those who could be supervising Tether.

Tether has often been embroiled in controversy, with some questioning whether Tether has enough reserves for USDT to be backed 1:1 by U.S. dollars. Lutnick has personally vouched for Tether multiple times. In January this year, Lutnick confirmed that Tether does hold enough reserves to back its stablecoin.

Besides, last month the WSJ reported that Tether was under investigation in the U.S. for potential violation of sanctions and anti-money laundering rules. Tether, however, refuted the claims.

Lutnick is a known proponent of Bitcoin and digital assets. In September, Lutnick said that regulators should treat Bitcoin as a commodity, like gold or oil. He further stated that regulators have little to no understanding of digital assets and how to regulate them.

The post Donald Trump’s Commerce Secretary picks Cantor Fitzgerald to collaborate with Tether on $2B BTC project appeared first on CryptoSlate.