Cantor Fitzgerald’s 5% stake in Tether, valued at $600M, highlights its growing role in supporting the stablecoin issuer financially.
CEO Howard Lutnick’s upcoming role in Trump’s administration could strengthen political ties amid scrutiny of Tether’s operations.
Cantor’s custody of Tether’s $134B reserves, mainly in US Treasury bills, underscores its significant influence on stablecoin financial infrastructure.
Cantor Fitzgerald reportedly acquired a 5% stake in stablecoin issuer Tether, valued at up to $600 million at the time of the deal. This investment could bolster Tether’s political standing, especially as Cantor’s CEO Howard Lutnick joins the Trump administration. Sources familiar with the agreement revealed the details in a recent *Wall Street Journal* report.
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Lutnick’s New Political Role
Lutnick was recently selected by President-elect Donald Trump as the next Secretary of Commerce. Additionally, he is serving as an adviser on Trump’s transition team, where he is involved in vetting candidates for government positions. Once confirmed by the Senate, Lutnick will step down as Cantor Fitzgerald’s CEO.
Strengthening Tether’s Political Position
Tether’s largest shareholder, Giancarlo Devasini, reportedly hinted that Lutnick’s political connections could help address the ongoing legal and regulatory challenges facing the stablecoin. Tether has been under investigation by the U.S. Attorney’s Office for the Southern District of New York for alleged involvement in illicit activities, including terrorism financing.
Cantor Fitzgerald has been a vital financial partner for Tether, especially during a period when the issuer has faced banking challenges globally. The firm holds a significant portion of Tether’s $134 billion reserves, primarily in U.S. Treasury bills. Lutnick has repeatedly emphasized the stability of Tether’s financial model, citing its importance in economies plagued by high inflation, such as Argentina and Venezuela.
Expanding Cryptocurrency Ventures
Lutnick’s firm has also been proactive in advancing its cryptocurrency ventures. At the Bitcoin 2024 conference, he announced a $2 billion Bitcoin lending program, offering leverage to Bitcoin holders. This initiative further solidifies Cantor’s position as a significant player in the digital asset space.
This partnership could signify a pivotal moment for Tether. Besides financial support, Cantor Fitzgerald’s stake may shield Tether from some regulatory pressures as Lutnick assumes a powerful political role. Moreover, Cantor’s influence in the financial sector reinforces Tether’s stability amid increasing scrutiny.
