tl;dr
Cantor Fitzgerald, a prominent US financial services firm, has acquired a 5% stake in Tether, the world's largest stablecoin issuer, for approximately $600 million. The partnership includes Bitcoin-backed lending initiatives. Tether, with its CEO Howard Lutnick now set to become Secretary of Commerc...
Cantor Fitzgerald Deepens Collaboration with Tether Cantor Fitzgerald, a prominent US financial services firm, has acquired a 5% stake in Tether, the world's largest stablecoin issuer, for approximately $600 million. The partnership includes Bitcoin-backed lending initiatives.
Tether, with its CEO Howard Lutnick now set to become Secretary of Commerce under President-elect Donald Trump, may benefit from this alliance, potentially gaining regulatory support. Additionally, Tether is expected to support Cantor Fitzgerald's multi-billion-dollar Bitcoin lending program.
Meanwhile, Tether has minted an additional $3 billion USDT, bringing the total minted since November 8 to $13 billion, pushing the total USDT supply to approximately $132 billion. This surge in USDT supply may reflect growing demand for stablecoins in the crypto market.
The acquisition talks, reportedly finalized in 2023, valued the 5% stake at approximately $600 million. This partnership positions Tether to gain strategic advantages, particularly as Cantor Fitzgerald’s CEO, Howard Lutnick, takes on his new role as Secretary of Commerce under President-elect Donald Trump.
Market observers suggest that the nomination raises the possibility of enhanced regulatory support for Tether, which has faced scrutiny over potential violations of sanctions and anti-money laundering regulations—a claim the company has denied. However, Lutnick has promised to step down from his positions at Cantor Senate confirmation.
Beyond the ownership stake, Tether is expected to support Cantor Fitzgerald’s Bitcoin lending program, a multi-billion-dollar initiative. The program aims to offer loans backed by Bitcoin, initially funded with $2 billion, with plans for significant future expansion.
Meanwhile, Cantor Fitzgerald is already a critical partner for Tether, reportedly holding a significant portion of the stablecoin issuer’s $134 billion reserves in US Treasury bills.
As Cantor Fitzgerald deepens its involvement with Tether, the firm has continued its aggressive token minting. On November 24, blockchain analytics platform Lookonchain reported that stablecoin company minted an additional $3 billion USDT, bringing the total minted since November 8 to $13 billion. This expansion has pushed the total supply of USDT to approximately $132 billion.
The increased USDT supply may reflect the growing demand for stablecoins, often used to hedge market positions or facilitate crypto transactions without converting to fiat. This liquidity influx could reduce volatility and enhance price stability across the digital asset market.
This surge in USDT supply coincides with a broader market rally led by Bitcoin and other assets such as Dogecoin and Solana, signaling renewed investor confidence in the crypto ecosystem.