According to the news reported by the Wall Street Journal (WSJ), leading trading firm Cantor Fitzgerald is expected to acquire a roughly 5% ownership stake in Tether, the world’s largest stablecoin issuer. Cantor Fitzgerald already serves as one of Tether’s major banking partners, and the acquisition would further cement the existing strong relationship between the two companies.
The deal values Cantor Fitzgerald’s stake in Tether at up to $600 million, according to information provided by business partners. Tether, which has an important place in the cryptocurrency world, is controlled by Giancarlo Devasini, a former plastic surgeon who has become a powerful figure in the cryptocurrency sector.
The increasing political influence of Cantor Fitzgerald CEO Howard Lutnick also makes this interesting. Lutnick was appointed as the US Secretary of Commerce during Donald Trump’s presidency, and this move, which combines his financial and political influence, is drawing attention. Lutnick has taken on a significant advisory role during the presidential transition and is expected to use this influence to support Tether against increasing regulatory and legal pressures. Devasini, who works closely with Lutnick, believes that Lutnick’s political position could mitigate potential threats to Tether. Both names have significant interests in influencing the new administration’s policies on the cryptocurrency sector.
Developments surrounding Cantor Fitzgerald’s stake in Tether highlight the growing connection between Wall Street, the crypto world, and U.S. politics. At a time when Lutnick is set to take on a critical role in shaping the country’s economic policies, the relationship between Cantor Fitzgerald and Tether could lead to more discussion of stablecoins and their potential risks to the financial system.
