Cantor Fitzgerald, a prominent Wall Street trading firm, is poised to acquire a significant minority stake in Tether, the issuer of the world’s largest stablecoin, according to sources familiar with the matter. The deal, which has not been previously reported, raises questions about the intersection of finance, cryptocurrency, and political influence, particularly given Cantor CEO Howard Lutnick’s close ties to former President Donald Trump.
The Wall Street Journal reports that Cantor Fitzgerald is expected to acquire approximately 5% ownership in Tether, a stake valued by Cantor at as much as $600 million, according to sources close to the deal. This investment solidifies Cantor’s position as one of Tether’s most crucial banking partners.
The deal comes at a time of increased scrutiny for Tether, which has faced questions about the reserves backing its stablecoin, USDT. USDT is pegged to the US dollar and plays a vital role in the cryptocurrency ecosystem, facilitating billions of dollars in daily transactions.
Adding to the intrigue is Lutnick’s role as a presidential transition advisor to Donald Trump. Sources indicate that Giancarlo Devasini, the owner of Tether, has expressed confidence in Lutnick’s ability to leverage his political connections to navigate potential regulatory challenges facing the stablecoin issuer. These claims, based on conversations with business associates of both men, suggest a potential blurring of lines between private business interests and political influence.
While the exact nature of Lutnick’s involvement in any potential political maneuvering remains unclear, the connection raises concerns about potential conflicts of interest. The acquisition of the Tether stake further deepens the relationship between Cantor Fitzgerald and the stablecoin giant, a relationship forged over the past year.
