Is Cantor Fitzgerald the New Power Player in Crypto? Inside Their Tether Alliance!

• Howard Lutnick’s ties to Donald Trump suggest potential political influence beneficial to Tether amid regulatory scrutiny.
• Plans discussed for a substantial secured loan program using Bitcoin as collateral, signaling deeper financial integration.
• Despite potential controversies, Cantor’s expanding partnership with Tether aims to secure a robust foothold in cryptocurrency lending.

Cantor Fitzgerald, a U.S. financial services firm, is reportedly deepening its engagement with Tether, the issuer of the world’s predominant stablecoin, according to recent analyses.

The partnership has been underscored by Cantor’s CEO, Howard Lutnick, who is also a recent nominee for U.S. Secretary of Commerce by Donald Trump, investing in Tether. 

Last year, this investment amounted to a 5% stake, valued at approximately $600 million, as cited by the Wall Street Journal from business associates.

“[Tether owner Giancarlo] Devasini said privately earlier this year that Lutnick will use his political influence to try to defuse threats facing Tether,” that report said.

Cantor’s involvement extends to using its custody services to safeguard the U.S. Treasury bonds that back Tether’s USDT, generating substantial custody fees. This collaboration was expanded when Cantor facilitated a $150 million investment by Tether in the crypto mining company Bitdeer earlier this year.

Discussions have also been held between Cantor Fitzgerald and Tether concerning a new loan program where Tether would support Cantor’s initiative to lend dollars against Bitcoin collateral, according to a Bloomberg report.

“Cantor Fitzgerald is discussing receiving support from Tether for its planned multibillion-dollar program to lend dollars to clients who put up Bitcoin as collateral,” the news agency wrote, citing unnamed sources who were not authorized to speak publicly. Bloomberg said the program had not yet been launched and that Tether would not be the only financier.

This proposed program, aiming to start with $2 billion and potentially expanding to tens of billions, has not been launched yet.

Tether and Cantor’s Growing Relationship

The relationship between Tether and Cantor is gaining attention as it coincides with political changes anticipated with Donald Trump’s administration, which is expected to be supportive of cryptocurrencies. The Wall Street Journal noted that Tether views Lutnick as a strategic ally who could influence favorable regulatory frameworks for cryptocurrencies, particularly stablecoins. 

Despite these strategic collaborations, a spokesperson for Tether has clarified to the WSJ that their interaction with Cantor is strictly professional, focused solely on reserve management, dismissing any suggestions that Lutnick’s political roles could impact regulatory decisions.

The post Is Cantor Fitzgerald the New Power Player in Crypto? Inside Their Tether Alliance! appeared first on ETHNews.