Cantor Fitzgerald Acquires 5% Stake in Tether in $600M Deal

Cantor Fitzgerald, the U.S. financial services and bond trading firm, has reportedly acquired a 5% stake in Tether, the company behind the world’s largest stablecoin, USDT. The move could strengthen Tether’s position at a time when the company is under heightened regulatory scrutiny.

According to The Wall Street Journal, Cantor Fitzgerald’s acquisition of Tether, valued at up to $600 million, could have significant political and economic implications. The development gained added attention as the company’s CEO Howard Lutnick has reportedly been tapped to serve as Secretary of Commerce under President-elect Donald Trump.

Additionally, the firm is planning to launch a substantial Bitcoin-backed lending program in partnership with the stablecoin issuer. The proposed program would provide dollar loans secured by Bitcoin as collateral, starting with an initial $2 billion fund. As the demand for cryptocurrency-backed financial products continues to grow, the venture could scale significantly.

Cantor Fitzgerald has remained a key financial ally to Tether, even as many other banks have distanced themselves. The firm holds a substantial share of Tether’s $134 billion reserve assets, which are largely composed of US Treasury bills.

Lutnik Appointment, Tether, and Regulations

Recent reports have stated that Tether has been under investigation by the U.S. Attorney’s Office for the Southern District of New York, with Manhattan prosecutors examining the company for potential violations of sanctions and involvement in money laundering activities. Tether dismissed the report and denied these allegations.

However, this brings into question whether Lutnick’s appointment will have an impact on regulatory actions. Following his appointment, Lutnick is said to be making plans to sell off his stake in Cantor Fitzgerald. He is also expected to transfer oversight of the firm’s relationship with Tether to his colleagues. His son, Brandon, has been mentioned as a potential successor.

Before Lutnick’s appointment as commerce secretary, a representative stressed that the firm’s engagement with Tether remained “entirely professional, based on managing reserves.” The statement aimed to quell concerns suggesting that Lutnick’s political ties might influence regulatory decisions involving Tether.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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