Cantor Fitzgerald Now Holds $600 Million Stake in Tether
Howard Lutnick, CEO and majority owner of Cantor Fitzgerald, has been nominated as Commerce Secretary by President-elect Donald Trump. Lutnick's potential appointment signals a possible pro-crypto shift in U.S. policy, given his involvement with blockchain and digital asset initiatives.
Lutnick’s potential appointment signals a possible pro-crypto shift in U.S. policy, given his involvement with blockchain and digital asset initiatives.
As a key figure on Trump’s transition team, his influence in shaping the regulatory landscape could have significant implications for the cryptocurrency industry.
In recent developments, Cantor Fitzgerald deepened its partnership with stablecoin issuer Tether, acquiring a 5% ownership stake reportedly valued at $600 million. This investment places Tether’s valuation at approximately $12 billion. According to sources cited in a Wall Street Journal report, Lutnick is seen as a valuable ally in addressing regulatory challenges faced by Tether, particularly concerning offshore stablecoins.
Tether has faced scrutiny over potential misuse of its USDT stablecoin, with investigations examining its alleged role in facilitating illicit activities and its use by sanctioned entities. While Tether denies being under formal investigation, reports suggest that U.S. authorities are monitoring its operations closely.
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Despite regulatory pressures, Tether has thrived amid rising Treasury yields, generating $7.7 billion in profit during the first nine months of the year. The company’s relationship with Cantor Fitzgerald has also strengthened, with Cantor managing a significant portion of Tether’s reserves and earning substantial fees for its services.
In light of his nomination, Lutnick has announced plans to resign from his positions at Cantor Fitzgerald, BGC, and Newmark, adhering to U.S. ethics regulations. He emphasized his intent to divest interests in these companies to comply with federal guidelines.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
