Cantor Fitzgerald Negotiates to Purchase Stake in Tether

Cantor Fitzgerald is in discussions to buy a 5% stake in Tether for $600 million, valuing the USDT issuer at $12 billion, according to WSJ.

Strategic Partnership

Cantor currently holds a large amount of US Treasury bills backing USDT. The relationship between the two parties is strengthened by CEO Howard Lutnick, who is a supporter of Bitcoin and Tether. Lutnick, who has been nominated as the US Secretary of Commerce, promised to adhere to ethical rules if he takes on the new position.

Tether's Development

Tether reported a profit of $2.5 billion in Q3 2024, with a total annual profit of $7.7 billion. The company has issued $7 billion USDT in the past 6 days, boosting the cryptocurrency market.

This deal marks Cantor's entry into the crypto market but faces controversy over the relationship and related political influence.