Key Takeaways
- Cantor moved to secure 5% of Tether ownership in a deal worth around $600 million.
- The company’s CEO, Howard Lutnick, will resign from Cantor Fitzgerald upon his confirmation as Commerce secretary.
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Cantor Fitzgerald, led by Donald Trump’s Commerce secretary nominee Howard Lutnick, reached an agreement to acquire a 5% ownership interest in Tether, according to a Nov. 23 report from the Wall Street Journal, citing business associates familiar with the matter.
The deal, valued at around $600 million, was revealed after Lutnick was named top economic policy official in the incoming Trump administration. The CEO of Cantor is a vocal supporter of stablecoins, specifically Tether’s USDT and Circle’s USDC.
“Dollar hegemony is fundamental to the United States of America. It matters to us, to our economy,” Lutnick said at the Chainalysis Links conference in April. “That’s why I’m a fan of properly backed stablecoins. I’m a fan of Tether. I’m a fan of Circle.”
Cantor Fitzgerald manages a substantial stockpile of US Treasuries that back the USDT stablecoin, which has exceeded $130 billion in market cap.
The partnership, inked in 2021, is strictly professional, focusing on managing reserves rather than regulatory influence, a spokesperson for Tether commented before Lutnick’s nomination as Commerce secretary.
“The claim that Lutnick’s involvement in a transition team somehow translates [into] influence over regulatory actions is laughable,”…
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