Cantor Fitzgerald acquires 5% stake in Tether for $600M

Cantor Fitzgerald has reportedly acquired a 5% stake in Tether (CRYPTO:USDT), the issuer of the USDT stablecoin, in a deal valued at up to $600 million, according to a Wall Street Journal report. 

This investment positions Cantor Fitzgerald as a significant player in Tether’s operations, with potential political advantages as Howard Lutnick, the firm’s CEO, was recently named U.S. President-elect Donald Trump’s Secretary of Commerce. 

The acquisition reportedly occurred within the past year, with speculation that Lutnick’s new role could bolster Tether’s standing amid regulatory scrutiny. 

Giancarlo Devasini, Tether's largest shareholder, reportedly suggested that Lutnick’s influence might help address regulatory threats facing the company. 

Cantor Fitzgerald has been integral to Tether's operations, serving as one of its key banking partners. 

The firm manages a substantial portion of Tether’s $134 billion reserves, primarily held in U.S. Treasury bills, which back the stablecoin’s value. 

The report emerges as the U.S. Attorney’s Office for the Southern District of New York continues its investigation into potential illicit activities involving Tether, including allegations of terrorism financing. 

Despite these challenges, Lutnick has voiced confidence in Tether’s financial health, highlighting its utility in high-inflation economies like Argentina, Turkey, and Venezuela. 

Additionally, Lutnick unveiled Cantor Fitzgerald’s Bitcoin (CRYPTO:BTC) lending initiative at the Bitcoin 2024 conference, offering $2 billion in leverage for Bitcoin holders. 

With approximately $3.5 billion in assets under management, Cantor Fitzgerald’s investment underscores its strategic expansion into the cryptocurrency market as Lutnick prepares to transition from CEO to his new governmental role. 

At the time of reporting, the Tether price was $1.00.