Cantor Fitzgerald Secures 5% Stake in Tether Amid Crypto Policy Shifts

A Major Stake in Tether's Future

Cantor Fitzgerald, the financial powerhouse managing the majority of Tether’s $133 billion in reserves, has acquired a 5% ownership stake in the stablecoin issuer. This strategic deal, valued at $600 million, positions Cantor as a critical player in the evolving crypto landscape, according to The Wall Street Journal.

Cantor’s Strategic Alliance with Tether

Within the past year, Cantor Fitzgerald deepened its partnership with Tether, the issuer of the world’s largest stablecoin, USDT. The $600 million stake values Tether at approximately $12 billion. Cantor collects millions annually in fees for managing Tether's reserves, according to sources cited by WSJ.

Tether’s leadership views Cantor CEO Howard Lutnick as a key ally in mitigating regulatory challenges. Lutnick’s political ties, including his role as co-chair of President-elect Donald Trump’s transition team and his recent nomination for Commerce Secretary, signal potential shifts in U.S. crypto policy.

Regulatory and Legal Controversies

Despite Tether's financial success, the company faces regulatory scrutiny. A criminal investigation has raised concerns about the stablecoin’s potential misuse for illicit activities, including terrorism and hacking. The Treasury Department is also reportedly considering sanctions against Tether due to its association with U.S.-sanctioned entities.

Tether’s spokesperson has dismissed these claims as baseless. CEO Paolo Ardoino recently reiterated, “There is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”

Lutnick’s Political and Professional Transition

Lutnick announced his intention to step down from Cantor, BGC, and Newmark roles upon confirmation as Commerce Secretary. In a statement, Lutnick pledged to divest his interests in compliance with U.S. ethics rules, ensuring no conflict of interest arises during his transition.

Tether’s Financial Resilience

Tether’s recent attestation report highlights its robust growth, fueled by soaring Treasury yields. The company recorded $7.7 billion in profits in the first nine months of the year, reinforcing its dominance in the stablecoin market.

Conclusion: A High-Stakes Partnership in a Shifting Landscape

Cantor Fitzgerald’s 5% stake in Tether not only solidifies their financial partnership but also intertwines the stablecoin issuer with political and regulatory dynamics. As Lutnick’s role in U.S. governance unfolds, the crypto industry will closely monitor how this alliance shapes the future of stablecoins and digital asset regulation.