Cantor Fitzgerald Takes 5% Stake In Stablecoin Issuer Tether

Cantor Fitzgerald Acquires 5% Tether Stake For $600 Million As Trump Nominates CEO Howard Lutnick For Secretary Of Commerce

BySteven Walgenbach

Updated: 25 November 2024

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Financial services firm Cantor Fitzgerald reportedly agreed to a 5% stake in stablecoin issuer Tether in the past year as President-elect Donald Trump selects the company’s CEO Howard Lutnick as his Secretary of Commerce.

The deal between Cantor Fitzgerald and Tether was valued at around $600 million, according to a Nov. 24 report by the Wall Street Journal that cited sources familiar with the matter. This would value the company at approximately $12 billion.

Tether Believes Lutnick Association Could Help “Defuse” Threats

Lutnick was nominated as Trump’s Secretary of Commerce on Nov. 19. Giancarlo Devasini, who is suspected to be Tether’s largest shareholder, reportedly said that the Cantor Fitzgerald CEO “will use his political clout to try to defuse threats facing Tether.”

WSJ on Tether…

“Devasini said privately earlier this yr that Lutnick will use his political clout to try to defuse threats facing Tether.”

“Cantor, which is majority-owned by Lutnick, holds most of Tether’s $134bil in assets.”

Cantor apparently has 5% stake in Tether as well. pic.twitter.com/QHOWsvY4bq

— Nate Geraci (@NateGeraci) November 24, 2024

Lutnick is already working closely with the President-elect as one of his transition advisers and has also been vetting candidates for other top government jobs. The Cantor Fitzgerald CEO said that he will step down from his role at the financial services firm as well as BGC and Newmark following senate confirmation.

“I intend to divest my interests in these companies to comply with US government ethics rules and do not expect any arrangement which involves selling shares on the open market,” he said in a statement.

Tether Under Investigation For Terrorism Financing

News of Cantor Fitzgerald’s stake in Tether follows reports that the US Attorney’s Office for the Southern District of New York has been investigating the stablecoin issuer to determine whether its USDT stablecoin is being used by third parties for illicit activities. Tether has also been cut off by several banking partners across the globe.

Cantor Fitzgerald, however, has remained one of Tether’s main banking providers. The firm also holds the majority of Tether’s $134 billion reserves.

Lutnick has expressed confidence in Tether’s financial health several times in the past as well, and highlighted the important role that a dollar-backed stablecoin can play in countries with high inflation.