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Cantor Fitzgerald has reportedly bought a 5% stake in Tether, valued at up to $600 million, according to a Wall Street Journal report on Nov. 24.
Political Connections in Play
This deal comes as Cantor Fitzgerald’s CEO, Howard Lutnick, was named Secretary of Commerce by President-Elect Donald Trump. Lutnick, part of Trump’s transition team, is said to be vetting candidates for government roles that could oversee Tether. Tether’s biggest shareholder, Giancarlo Devasini, reportedly believes Lutnick’s political influence could help ease pressure on the company.
Investigations and Banking Ties
Tether is under investigation for potential misuse in illegal activities, including terrorism financing. Even so, Cantor Fitzgerald has become one of Tether’s key banking partners, holding a large chunk of its $134 billion reserves, mostly in U.S. Treasury bills.
Lutnick’s Support for Tether
Lutnick has been vocal about his confidence in Tether’s financial health, emphasizing how stablecoins backed by the U.S. dollar can help people in countries with high inflation, like Argentina and Turkey. Earlier this year, he also unveiled Cantor Fitzgerald’s $2 billion Bitcoin lending program at the Bitcoin 2024 conference.
What’s Next
Cantor Fitzgerald, managing $3.5 billion in assets, is expanding its crypto footprint. Lutnick has said he will step down as CEO once his appointment is confirmed by the Senate.
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