(Reuters) – US President-elect Donald Trump’s pick for Commerce Secretary, Howard Lutnick is in talks to deepen his financial relationship with the company that uses the world’s largest stablecoin, Tether, by starting a $2 billion program to lend dollars to consumers against bitcoin, Bloomberg News reported on Sunday.
Lutnick’s financial firm, Cantor Fitzgerald, is discussing getting support from Tether to help fund the project, which could 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 of business hours.
Tether uses Cantor to hold billions of dollars worth of assets that support the value of the stablecoin in a relationship that helps Lutnick’s company earn tens of millions of dollars a year, Bloomberg reported.
Earlier this week, Trump said he would nominate Wall Street magnate Howard Lutnick to lead his trade and tax plan as head of the Commerce Department. He would also have “some direct work” at the office of the US Trade Representative.
Lutnick has been known to promote the adoption of cryptocurrency. The Commerce Department oversees a wide range of functions with approximately 47,000 employees, from the US Census Bureau to weather forecasting, maritime navigation and investment promotion.
(Reporting by Kanjyik Ghosh; Editing by Elaine Hardcastle)