Lutnick, Cantor Fitzgerald negotiated a 5% ownership stake in Tether: WSJ

Bitget App

Trade smarter

Bitget

News

The Block2024/11/23 16:00

By:The Block

Quick Take Cantor, which holds most of Tether’s $133 billion in reserves, negotiated a 5% ownership interest in the stablecoin issuer within the past year, according to The Wall Street Journal.

Lutnick, Cantor Fitzgerald negotiated a 5% ownership stake in Tether: WSJ image 0

Cantor Fitzgerald CEO and majority owner Howard Lutnick served as a co-chair of President-elect Donald Trump’s transition team and was recently nominated for Commerce Secretary, which could mark a pro-crypto shift in U.S. policy.

Within the past year, Cantor deepened its ties with stablecoin issuer Tether by securing a deal for a 5% ownership stake that was valued at as much as $600 million, according to a new report from The Wall Street Journal citing "some of the business associates." That would value the stablecoin issuer at around $12 billion.

Tether’s leadership reportedly sees Lutnick as a pivotal ally in countering proposed legislation aimed at tightening oversight of offshore stablecoins like Tether's USDT.

"[Tether owner Giancarlo] Devasini said privately earlier this year that Lutnick will use his political clout to try to defuse threats facing Tether," the WSJ report said, citing business associates of both men. A spokesperson told WSJ that "Tether's relationship with Cantor is entirely professional, based on managing reserves. The claim that Lutnick’s involvement in a transition team somehow translates to influence over regulatory actions is laughable."

Tether's U.S. dollar-pegged USDT is the largest stablecoin by market cap. Cantor Fitzgerald holds most of Tether's $133 billion in assets in exchange for tens of millions of dollars of fees each year, people familiar with Cantor’s business told WSJ.

A criminal investigation is looking into whether Tether is being used by third parties for illicit activities such as terrorism and hacking, The Wall Street Journal reported last month . The Treasury Department has also been weighing sanctioning Tether because of the stablecoin’s use by U.S.-sanctioned people and groups, according to WSJ.

"As we told to WSJ there is no indication that Tether is under investigation. WSJ is regurgitating old noise," Tether Paolo CEO Ardoino said at the time. "Full stop."

Tether has grown significantly from soaring Treasury yields and has registered $7.7 billion in profit through the first nine months of the year, according to its latest attestation report.

Lutnick said Wednesday he will step down from his positions at Cantor, BGC and Newmark upon Senate confirmation.

"I intend to divest my interests in these companies to comply with U.S. government ethics rules and do not expect any arrangement which involves selling shares on the open market," he said in a statement.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

1. **Challenges in the Creator Economy**: Web2 content platforms suffer from issues such as opaque algorithms, non-transparent distribution, unclear commission rates, and high costs for fan migration, making it difficult for creators to control their own data and earnings. 2. **Integration of AI and Web3**: The development of AI technology, especially AI Avatar technology, combined with Web3's exploration of the creator economy, offers new solutions aimed at breaking the control of centralized platforms and reconstructing content production and value distribution. 3. **Positioning of the TwinX Platform**: TwinX is an AI-driven Web3 short video social platform that aims to reconstruct content, interaction, and value distribution through AI avatars, immersive interactions, and a decentralized value system, enabling creators to own their data and income. 4. **Core Features of TwinX**: These include AI avatar technology, which allows creators to generate a learnable, configurable, and sustainably operable "second persona", as well as a closed-loop commercialization pathway that integrates content creation, interaction, and monetization. 5. **Web3 Characteristics**: TwinX embodies the assetization and co-governance features of Web3. It utilizes blockchain to confirm and record interactive behaviors, turning user activities into traceable assets, and enables participants to engage in platform governance through tokens, thus integrating the creator economy with community governance.

BlockBeats•2025/11/22 11:23

Empowered by AI Avatars, How Does TwinX Create Immersive Interaction and a Value Closed Loop?

Aster CEO explains in detail the vision of Aster privacy L1 chain, reshaping the decentralized trading experience

Aster is set to launch a privacy-focused Layer 1 (L1) public chain, along with detailed plans for token empowerment, global market expansion, and liquidity strategies.

BlockBeats•2025/11/22 11:22