Key Takeaways
Cantor Fitzgerald, led by Howard Lutnick, President Trump’s nominee for Commerce secretary, has agreed to acquire a 5% ownership stake in Tether, according to sources familiar with the matter. The deal is valued at approximately $600 million. Cantor Fitzgerald, a vocal supporter of stablecoins, manages a significant amount of US Treasuries that back Tether’s USDT stablecoin, which currently has a market capitalization of over $130 billion.
Lutnick, who will resign from Cantor Fitzgerald upon his confirmation as Commerce secretary, has expressed his support for stablecoins and specifically mentioned his admiration for Tether and Circle’s USDC stablecoin. He believes that the dominance of the US dollar is crucial for the country’s economy.
Tether, however, has been under scrutiny for potential violations of money laundering and sanctions laws. The investigation focuses on whether Tether’s USDT stablecoin has been used for illicit activities. Tether has denied these allegations, calling them unfounded and based on speculation without verified sources.
Before Lutnick’s nomination as Commerce secretary, Tether clarified that their partnership with Cantor Fitzgerald is strictly professional and revolves around managing reserves, not exerting regulatory influence. A spokesperson for Tether dismissed the idea that Lutnick’s involvement in a transition team would give him any power over regulatory actions.
Upon his confirmation, Lutnick intends to divest his interests in Cantor Fitzgerald to comply with government ethics standards.
