Trump pick Lutnick’s firm in talks with Tether for $2 billion bitcoin lending project, Bloomberg reports

US President-elect Donald Trump’s pick for Commerce Secretary, Howard Lutnick is in talks to deepen his financial ties with the company operating the world’s largest stablecoin, Tether, by launching a $2 billion project to lend dollars to clients against bitcoin, Bloomberg News reported on Sunday.

Lutnick’s financial services firm Cantor Fitzgerald is discussing receiving support from Tether to help fund the project, that 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 worth of Treasuries that support the value of its stablecoin in a relationship that helps Lutnick’s firm earn tens of millions of dollars annually, Bloomberg reported.

Bitcoin at record highs, sets sights on $100,000

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 US Trade Representative’s office.

Lutnick has been known to promote the adoption of cryptocurrency.

The Commerce Department oversees a sprawling array of functions with nearly 47,000 employees, from the US Census Bureau to weather forecasting, ocean navigation and investment promotion.