Cantor Fitzgerald agreed to acquire 5% stake in Tether for $600M: Report

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As a researcher with years of experience in the financial sector, I find this development between Cantor Fitzgerald and Tether intriguing, to say the least. The potential 5% stake agreement between these two entities, valued at a staggering $600 million, could indeed pave the way for Tether to garner more political support, given the appointment of Howard Lutnick as President-Elect Donald Trump’s Secretary of Commerce.

In 2023, it’s said that financial services company Cantor Fitzgerald entered into a deal for a 5% ownership of stablecoin issuer Tether. This move might strengthen their relationship with the incoming Trump administration, potentially garnering them more political backing.

According to a report by the Wall Street Journal on November 24th, it was stated that the 5% share was estimated to be worth around $600 million when the deal was finalized. This information was sourced from individuals in the relevant business circle who are well-informed about the specifics of the situation.

Appointing Howard Lutnick, CEO of Cantor Fitzgerald, as the U.S. President-Elect Donald Trump’s Secretary of Commerce on Nov. 19 may indicate an increase in political backing for Tether due to Lutnick’s influence.

According to a report by the Wall Street Journal, Giancarlo Devasini – who is believed to be one of the major shareholders of Tether – allegedly stated that Lutnick intends to leverage his political influence to address potential threats facing Tether.

It’s known that Lutnick is collaborating closely with Trump, serving in an advisory role during the transition period. Reports have surfaced indicating that the U.S. Attorney’s Office for the Southern District of New York has been examining Tether’s business practices for a number of years now.

At present, Cantor Fitzgerald stands as one of Tether’s key financial allies, given that numerous banks worldwide have severed ties with the stablecoin issuer.

A significant portion of Tether’s ($134 billion) reserves is managed by the firm led by Lutnick, primarily in U.S. Treasury bills.

On numerous occasions, Lutnick openly voiced his assurance about Tether’s financial stability and emphasized the significant part that a USD-pegged stablecoin could have in helping individuals residing in nations with high inflation such as Argentina, Turkey, and Venezuela.

Additionally, he unveiled Cantor Fitzgerald’s Bitcoin lending initiative during the Bitcoin 2024 conference held in July.

In the future, we plan to provide borrowing opportunities for individuals who already own Bitcoin. Initially, our lending program will start with a $2 billion fund.

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2024-11-24 07:38