Cantor Fitzgerald-Tether Partnership Advances as USDT Supply Rise Alongside Market Recovery
November 24, 2024
Cantor Fitzgerald, a prominent American financial services firm, is expanding its alliance with Tether, a major player in the digital asset industry and issuer of the world’s largest stablecoin.
The company has reportedly agreed to acquire a 5% stake in Tether as part of a broader collaboration that includes Bitcoin-backed lending initiatives.
$13B USDT Issue Sparks Confusion as Cantor Fitzgerald Deepens Ties
The acquisition talks, which were finalized in 2023, valued the 5% stake at around $600 million. The partnership positions Tether for strategic advantages, especially as Cantor Fitzgerald CEO Howard Lutnick assumes his new role as commerce secretary under President-elect Donald Trump.
Market watchers point out that the nomination raises the possibility of increased regulatory support for Tether, which has faced scrutiny over potential violations of sanctions and anti-money laundering regulations — an allegation the company has denied. However, Lutnick has promised to step down from his positions at Cantor upon Senate confirmation.
In addition to the equity stake, Tether is expected to support Cantor Fitzgerald’s Bitcoin Lending Program, a multibillion-dollar initiative. The program aims to provide Bitcoin-backed loans, with initial funding of $2 billion, with plans for significant expansion in the future.
Meanwhile, Cantor Fitzgerald is already a vital partner for Tether, reportedly holding a significant portion of the stablecoin issuer’s $134 billion in U.S. Treasury securities.
As Cantor Fitzgerald deepened its involvement with Tether, the company continued its aggressive minting of tokens. On November 24, blockchain analytics platform Lookonchain reported that the stablecoin minted an additional $3 billion in USDT, bringing the total minted since November 8 to $13 billion. This expansion pushed the total supply of USDT to around $132 billion.
The increase in USDT supply may reflect growing demand for stablecoins, which are often used to hedge market positions or facilitate cryptocurrency transactions without converting to fiat currencies. This influx of liquidity could reduce volatility and promote price stability across the digital asset market.
This surge in USDT supply coincides with a broader market rally led by Bitcoin and other assets like Dogecoin and Solana, indicating renewed investor confidence in the crypto ecosystem.
