President-elect Donald Trump's pick for Commerce Secretary, Howard Lutnick, is in the process of forging a multi-billion dollar deal with Tether (CRYPTO: USDT), the company behind the world's largest stablecoin by market capitalization.

What happened: Cantor Fitzgerald, a financial services firm led by Lutnick, is planning to launch a program with Tether's support that would lend dollars to clients who pledged Bitcoin (CRYPTO: BTC) as collateral, according to a Bloomberg, citing sources familiar with the matter.

The funding for the program is expected to start at $2 billion, eventually running up to "tens of billions."

Both Cantor and Tether didn't immediately return Benzinga's request to confirm the report.

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Why It Matters: Cantor has been Tether's Wall Street banker, acting as the custodian of billions of dollars of U.S. Treasuries that back the USDT stablecoin.

In the past, Lutnick praised Tether, stating that the company had sufficient reserves.

"I manage many, many of their assets. From what we've seen, and we did a lot of work, they have the money," he said in an interview.

Lutnick's support and his elevation to a top cabinet post come amid controversy surrounding Tether, which has been accused of aiding criminal activities like illegal gambling and money laundering.

A report last month also pointed toward a federal probe into possible misuse of Tether's stablecoin in illegal activities. Tether CEO Paolo Ardoino, however, denied being under any investigation.

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