Financial services firm Cantor Fitzgerald reportedly agreed to acquire a 5% stake in stablecoin issuer Tether in 2023, a move that could bolster the company’s political backing under the incoming Trump administration.
According to a Nov. 24 report by the Wall Street Journal citing business associates familiar with the matter, the 5% stake was valued at $600 million at the time of the agreement. The development comes as Cantor Fitzgerald CEO Howard Lutnick was appointed U.S. Secretary of Commerce by President-Elect Donald Trump on Nov. 19.
Giancarlo Devasini, believed to be Tether’s largest shareholder, reportedly suggested that Lutnick could leverage his political influence to address regulatory challenges facing the stablecoin issuer, the WSJ claimed.
Cantor Fitzgerald Reportedly Acquires 5% Stake in Tether for $600M
Financial services firm Cantor Fitzgerald reportedly agreed to acquire a 5% stake in stablecoin issuer Tether in 2023, a move that could enhance Tether’s political positioning under the incoming Trump administration.
According to a Wall Street Journal report on Nov. 24, the 5% stake was valued at $600 million at the time of the agreement, citing business associates familiar with the matter. This deal coincides with Cantor Fitzgerald CEO Howard Lutnick’s appointment as U.S. Secretary of Commerce by President-Elect Donald Trump on Nov. 19.
Giancarlo Devasini, believed to be Tether’s largest shareholder, reportedly remarked that Lutnick’s political influence could help mitigate regulatory threats facing the stablecoin issuer. Lutnick has already joined Trump’s team as a transition advisor.
The report follows ongoing investigations by the U.S. Attorney’s Office for the Southern District of New York into Tether’s operations, which have spanned several years. Despite regulatory challenges, Cantor Fitzgerald has remained one of Tether’s key banking partners, holding the majority of its $134 billion reserves, primarily in U.S. Treasury bills.
Lutnick has consistently expressed confidence in Tether’s financial stability, emphasizing the importance of dollar-backed stablecoins in addressing inflationary challenges in countries like Argentina, Turkey, and Venezuela. At the Bitcoin 2024 conference in July, he also announced Cantor Fitzgerald’s $2 billion Bitcoin lending program, designed to provide leverage to Bitcoin holders.
Cantor Fitzgerald, which currently manages approximately $3.5 billion in assets, appears to be doubling down on its involvement in the cryptocurrency space, strengthening its ties with Tether at a critical juncture.
