US financial services giant Cantor Fitzgerald is expanding its alliance with Tether, a key player in the digital asset industry and the issuer of the world’s largest stablecoin.
Cantor Fitzgerald has reportedly purchased a 5% stake in Tether. The move is part of a larger deal that includes a $2 billion Bitcoin-backed lending initiative.
Tether issues $13 billion in USDT as Cantor Fitzgerald deepens ties
The acquisition negotiations, reportedly finalized in 2023, valued the 5% stake at approximately $600 million. This partnership positions Tether for strategic advantages. This is especially true as Cantor Fitzgerald CEO Howard Lutnick takes on a new role as President-elect Donald Trump’s Secretary of Commerce.
Market observers suggest the appointment raises the possibility of enhanced regulatory support for Tether, which has faced criticism over potential violations of sanctions and anti-money laundering regulations, an allegation the company has denied. However, Lutnick has vowed to step down from his roles at Cantor following Senate confirmation.
In addition to the equity stake, Tether is expected to support Cantor Fitzgerald’s multi-billion-dollar Bitcoin lending program. The program aims to offer Bitcoin-backed loans, initially funded with $2 billion, with plans for significant expansion in the future.
Cantor Fitzgerald now manages most of Tether’s reserves
Meanwhile, Cantor Fitzgerald is already a critical partner for Tether, holding a significant portion of the stablecoin issuer’s $134 billion reserves in U.S. Treasuries.
As Cantor Fitzgerald deepens its involvement with Tether, the company has continued its aggressive token issuance. Yesterday (24), blockchain analytics platform Lookonchain reported that the stablecoin company issued an additional $3 billion in USDT, bringing the total issued since November 8 to $13 billion. This expansion brings the total supply of USDT to approximately $132 billion.
Tether USDT supply. Source: Tether
The increase in USDT supply may primarily reflect the growing demand for stablecoins, which are often used to hedge market positions or facilitate crypto transactions without converting to fiat. Thus, this influx of liquidity may reduce volatility and improve price stability in the digital asset market.
This increase in USDT supply therefore coincides with a broader market rally led by Bitcoin and other assets such as Dogecoin and Solana, signaling renewed investor confidence in the crypto ecosystem.
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