Tether Can Partner with Cantor’s Bitcoin Lending

CRYPTO
Tether Can Partner with Cantor’s Bitcoin Lending

Tether is in discussions to join Cantor Fitzgerald’s upcoming Bitcoin lending program, set to launch with $2 billion in initial funding and potential growth to tens of billions, according to the Wall Street Journal. The initiative, first announced in July, allows clients to borrow using Bitcoin as collateral.

Cantor, which has custodied Tether’s U.S. Treasuries since 2021, also holds a 5% stake in Tether worth approximately $600 million. This deepening relationship underscores Tether’s influence as the issuer of USDT, the world’s most widely used stablecoin with a $132.76 billion market cap.

The lending program emerges as Trump’s administration signals a crypto-friendly approach, reversing Biden-era crackdowns. Cantor’s chairman, Howard Lutnick, a crypto advocate, is a key member of Trump’s transition team and was recently nominated to lead the Department of Commerce. If confirmed, Lutnick plans to resign from Cantor, positioning himself to shape U.S. crypto policy during Trump’s term.

FINANCE
China Prepares Record Export Year

Chinese exports are expected to hit a record high in 2024 as foreign buyers rush to place orders ahead of potential tariff hikes under President-elect Donald Trump. Analysts surveyed by Bloomberg project export growth of 7% in the fourth quarter compared to last year, lifting total exports to $3.548 trillion, surpassing the 2022 record.

Erica Tay of Maybank Investment Banking Group noted that "panic-stockpiling" by international firms could temporarily boost Chinese exports. However, fears of an expanded trade war are prompting Beijing to prepare additional stimulus measures to counter economic risks.

Despite surging exports, domestic demand remains weak, with imports flat-lining. Analysts predict the People’s Bank of China may further cut the reserve requirement ratio by 25 basis points to support lending, building on measures introduced in September to stabilize growth.

During his first term, Trump imposed tariffs of up to 25% on $300 billion worth of Chinese goods. His campaign promise to raise tariffs as high as 60% could significantly disrupt trade between the two largest economies, increasing China's reliance on domestic and regional markets while leveraging yuan depreciation and stimulus to mitigate the impact. China’s GDP is forecasted to grow 4.9% in the fourth quarter.

FINANCE
Goldman Faces $900M Northvolt Loss

Goldman Sachs Asset Management funds face a nearly $900 million loss following Swedish battery maker Northvolt AB's bankruptcy filing, according to the Financial Times. The private equity funds, holding $896 million in exposure to Northvolt, will fully write down the investment by year-end.

Northvolt, once a leader in Europe's push for electric vehicle batteries, filed for Chapter 11 protection in the U.S. after months of restructuring talks with stakeholders failed. Goldman, the company’s second-largest shareholder, led an investor group attempting to rescue the firm but could not avert the collapse. Reports suggest Northvolt had only a week’s worth of cash remaining at the time of filing.

In a statement, Goldman acknowledged its disappointment but emphasized the diversified nature of its funds, which include risk limits to mitigate losses. The bankruptcy marks a significant setback for Northvolt and its ambitions to lead Europe’s EV battery industry.

Word of the day
Chastise

To chastise someone is to criticize them harshly for doing something wrong.

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