- Cantor Fitzgerald is reportedly in talks with Tether.
- The company wants the USDT issuer to join its crypto lending business as a financier.
- The financial institution allegedly agreed to acquire a 5% stake in Tether.
Howard Lutnick’s global financial institution, Cantor Fitzgerald, reportedly seeks to strengthen its financial ties with Tether, one of the biggest and most controversial names in the crypto industry.
The rumors emerged five days after U.S. President-elect Donald Trump nominated the prominent Wall Street boss as the new administration’s Commerce Secretary. Lutnick initially contested for Treasury Secretary, a more high-profile role that Trump later awarded to Scott Bessent, a hedge fund manager and his campaign ally.
Cantor Fitzgerald’s Business with Tether
On November 24, Bloomberg reported that Lutnick’s Cantor Fitzgerald was discussing receiving support from the USDT issuer for its planned multibillion-dollar Bitcoin financing and lending business. The company announced the new venture at the Bitcoin 2024 conference in July, with an initial funding of $2 billion.
Sponsored
The report, citing people familiar with the matter, said the funding of Cantor Fitzgerald’s Bitcoin business may reach “tens of billions” if the company wins Tether’s support as one of the project’s multiple financial contributors.
The USDT issuer’s relationship with Canto Fitzgerald dates back to 2021 when the company started managing Tether’s multibillion-dollar Treasury portfolio that backs its stablecoin. Lutnick confirmed in a January interview with Bloomberg Television that Tether had the “money” to back about $83 billion worth of its USDT stablecoin. CoinMarketCap data shows that USDT’s market has surged exponentially since then and now stands at over $130 billion.
In addition to the rumored talks, the Wall Street Journal (WSJ) reported on November 23 that Cantor Fitzgerald had agreed to acquire a 5% stake in Tether in the past year. Citing anonymous sources, WSJ said the deal was valued at $600 million when it was made.
Read more about Donald Trump’s Treasury Cabinet pick:
Donald Trump Taps Crypto-Friendly Scott Bessent as Treasury Secretary
Stay updated on the XRP ETF timeline:
XRP ETF Coming in 2025? Here’s the Timeline to Watch
