Trump Commerce Pick Howard Lutnick Said in Talks to Deepen Financial Ties With Tether

(Reuters) - U.S. President-elect Donald Trump's pick for Commerce Secretary, Howard Lutnick is in talks to deepen his financial ties with the

U.S. President-elect Donald Trump's pick for Commerce Secretary is in talks to deepen his financial ties with the company operating the world's largest stablecoin, Tether, people familiar with the matter told Bloomberg News.

Howard Lutnick is discussing having Tether help fund a $2 billion project to lend dollars to clients against bitcoin, the report said on Sunday. The effort could eventually grow to tens of billions of dollars, according to the people, who asked not to be named because the talks are private.

Lutnick's financial services firm Cantor Fitzgerald helps Tether manage billions of dollars in U.S. Treasuries that back the value of its stablecoin, in a relationship that also helps Cantor earn tens of millions of dollars annually, according to Bloomberg.

Tether and Cantor did not immediately respond to a Reuters request for comment outside business hours.

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 U.S. Trade Representative's office.

Lutnick has been a vocal proponent of adopting cryptocurrency. The Commerce Department oversees a sprawling array of functions with nearly 47,000 employees, from the U.S. Census Bureau to weather forecasting, ocean navigation and investment promotion.