Cantor Fitzgerald Will Acquire 5% Ownership Interest in Tether

Key Points:

• Cantor Fitzgerald will acquire a 5% ownership stake in Tether, strengthening its role as a key banking partner managing a significant portion of Tether’s U.S. Treasury portfolio.
• Cantor CEO Howard Lutnick, a strong supporter of Tether, plans to step down if confirmed as U.S. Commerce Secretary.

Wall Street Journal reported that the Wall Street financial services giant Cantor Fitzgerald is all set to purchase a 5% stake in Tether, the world’s largest stablecoin issuer.

Read more: Cantor Fitzgerald Predicts Huge Bitcoin Returns!

Cantor Fitzgerald to Purchase 5% Stake in Tether

The move confirms and extends Cantor Fitzgerald’s continuing relationship with Tether. Already, the company acts as one of its main banking relationships and manages a large part of its multibillion-dollar U.S. Treasury portfolio.

Cantor Fitzgerald Chief Executive Officer Howard Lutnick, during a 2023 interview with CNBC and considered one of Tether’s most outspoken supporters, hailed the firm as a “big fan” of the stablecoin issuer. At the time, he praised Tether‘s treasury holdings, which now exceed $90 billion, and highlighted its influence in the crypto sector.

The transaction comes as Lutnick has been in much bigger news – being nominated by the Trump administration to take on the role of Secretary of the Commerce Department. Still pending Senate confirmation, Lutnick has indicated he plans to relinquish his duties with Cantor Fitzgerald and divest his interests in his companies amid strict ethics regulations.

Tether Under Investigation as Regulatory Pressure Mounts

The relationship of Cantor Fitzgerald with Tether contrasts with the cautiousness of other Wall Street firms in recent times, especially after the 2023 Silicon Valley Bank collapse, which further raised scepticism toward cryptocurrency businesses. Yet despite these challenges, Cantor managed more than half of Tether’s stablecoin reserves as of February, earning fees for its services.

Tether continues to be investigated by the US Treasury and Justice departments on suspicion of violating anti-money laundering sanctions laws. Cantor’s partial ownership of Tether’s $134 billion in assets, which are composed mostly of U.S. Treasury bills, demonstrates how pivotal it is in the ecosystem.