Key Takeaways
Cantor Fitzgerald, led by Howard Lutnick, who has been nominated as Commerce Secretary by Donald Trump, has reached an agreement to acquire a 5% ownership stake in Tether. This deal is valued at approximately $600 million, according to a report from the Wall Street Journal, citing sources familiar with the matter.
The announcement of this deal came after Lutnick was named a top economic policy official in the incoming Trump administration. Lutnick has expressed his support for stablecoins, specifically Tether’s USDT and Circle’s USDC, stating that the US dollar’s dominance is crucial for the United States’ economy.
Cantor Fitzgerald currently manages a significant amount of US Treasuries that back Tether’s USDT stablecoin, which has a market capitalization exceeding $130 billion.
A spokesperson for Tether clarified that the partnership with Cantor Fitzgerald, established in 2021, is strictly professional and focused on managing reserves, rather than exerting regulatory influence. This statement was made prior to Lutnick’s nomination as Commerce Secretary.
Tether has recently faced scrutiny regarding potential violations of money laundering and sanctions laws. The Wall Street Journal reported last month that there is an investigation into whether third parties have used Tether’s USDT stablecoin to finance illegal activities.
Tether has denied these allegations and called them “outrageous.” The company asserts that the claims are based on speculation without verified sources. CEO Paolo Ardoino referred to the report as “old noise.”
Lutnick intends to resign from Cantor Fitzgerald once his role as US Commerce Secretary is confirmed by the Senate. He has stated that he will divest his interests to comply with government ethics standards.