- Cantor Fitzgerald acquired a 5% Tether stake, valued up to $600M, with its CEO now U.S. Commerce Secretary under President-Elect Trump.
- Cantor Fitzgerald holds most of Tether’s $134B reserves, mainly in U.S. Treasury bills, amid global banking challenges for the stablecoin.
- Lutnick announced a $2B Bitcoin lending program before stepping down as Cantor Fitzgerald CEO upon Senate confirmation.
Cantor Fitzgerald has reportedly acquired a 5% stake in Tether over the past year, valuing the investment at up to $600 million. The development aligns with recent changes in U.S. political leadership, raising questions about its implications for the stablecoin issuer. The news follows the appointment of Cantor Fitzgerald’s CEO, Howard Lutnick, as the Secretary of Commerce under President-Elect Donald Trump.
Lutnick’s Role in Tether’s Political and Financial Prospects
Notably, Lutnick’s new position could influence how Tether navigates mounting regulatory scrutiny. Sources familiar with the deal have indicated that Cantor Fitzgerald remains a crucial banking partner for Tether.
Reportedly, the firm holds most of Tether’s $134 billion reserves in U.S. Treasury bills, a relationship that has gained prominence as Tether faces banking challenges globally.During a recent statement, Lutnick expressed his confidence in Tether’s financial health and the stability it offers in high-inflation economies such as Argentina, Turkey, and Venezuela.
Moreover, observers believe that Lutnick’s political influence could play a key role in managing ongoing investigations into Tether. These investigations include allegations by the U.S. Attorney’s Office for the Southern District of New York concerning illicit use cases.
New Bitcoin Lending Program Adds to Cantor’s Crypto Portfolio
In addition, Cantor Fitzgerald’s involvement in cryptocurrency extends beyond Tether. At the Bitcoin 2024 conference, Lutnick announced a $2 billion Bitcoin lending program. This initiative aims to provide leverage to Bitcoin holders, further establishing the firm as a significant player in the crypto industry.
Consequently, as Lutnick prepares to step down as CEO upon Senate confirmation, his dual role as a government official and a crypto industry influencer has sparked industry-wide discussions. These developments come as regulators continue to scrutinize stablecoins, which play a critical role in global financial systems.
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