Cantor Fitzgerald Buys 5% of Tether for $600 Million; Plans $2 Billion Bitcoin Loan Program

Nov 24, 2024, 08:06 AM

Cantor Fitzgerald, led by CEO Howard Lutnick, has agreed to acquire a 5% stake in Tether Holdings Ltd., the world's largest stablecoin issuer, for up to $600 million, according to reports by the Wall Street Journal and Bloomberg. Cantor Fitzgerald, one of only 24 primary dealers authorized to trade U.S. government securities with the Federal Reserve, holds most of Tether's $134 billion in assets, including $100 billion worth of audited U.S. Treasury bills. The investment comes as Lutnick has been appointed by President-elect Donald Trump as the next U.S. Secretary of Commerce and is co-leading the Trump/Vance transition team. Cantor Fitzgerald, one of Tether's biggest partners, is also discussing with Tether a planned $2 billion program to lend dollars to clients who put up Bitcoin as collateral. Lutnick may use his political influence to address regulatory threats facing Tether, potentially providing the stablecoin issuer with greater regulatory protection.