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<p><strong>Key Points:</strong></p>  
<ul class="wp-block-list">
 <li><em>Cantor Fitzgerald will acquire a 5% ownership stake in Tether, strengthening its role as a key banking partner managing a significant portion of Tether’s U.S. Treasury portfolio.</em></li>  
 <li><em>Cantor CEO Howard Lutnick, a strong supporter of Tether, plans to step down if confirmed as U.S. Commerce Secretary.</em></li> 
</ul>  
<h5 class="wp-block-heading"><em>Wall Street Journal</em> <a href="https://www.wsj.com/finance/currencies/howard-lutnick-giancarlo-devisini-tether-cryptocurrency-3d0a961c" target="_blank" rel="noopener noreferrer nofollow">reported</a> that the Wall Street financial services giant Cantor Fitzgerald is all set to purchase a 5% stake in Tether, the world's largest stablecoin issuer.</h5>  
<figure class="wp-block-image aligncenter size-large"><a href="https://coincu.com/wp-content/uploads/2024/11/On_White_40_optimized_2000-scaled.jpg" rel="noopener noreferrer nofollow"><img src="https://coincu.com/wp-content/uploads/2024/11/On_White_40_optimized_2000-1024x576.jpg" alt="Cantor Fitzgerald Will Acquire 5% Ownership Interest in Tether" class="wp-image-293594"></a>
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<h2 class="wp-block-heading" id="cantor-fitzgerald-to-purchase-5-stake-in-tether">Cantor Fitzgerald to Purchase 5% Stake in Tether</h2>  
<p>The move confirms and extends Cantor Fitzgerald's continuing relationship with Tether. Already, the company acts as one of its main banking relationships and manages a large part of its multibillion-dollar U.S. Treasury portfolio.</p>  
<p>Cantor Fitzgerald Chief Executive Officer <a href="https://coincu.com/278613-ceo-of-cantor-fitzgerald-a-bitcoin-advocate/" target="_blank" rel="noopener noreferrer nofollow">Howard Lutnick</a>, during a <a href="https://x.com/gaborgurbacs/status/1734700264190304684" target="_blank" rel="noopener noreferrer nofollow">2023 interview</a> with <em>CNBC</em> and considered one of Tether's most outspoken supporters, hailed the firm as a "big fan" of the stablecoin issuer. At the time, he praised <a href="https://coincu.com/242458-tethers-balance-sheet-confirmed/" target="_blank" rel="noopener noreferrer nofollow">Tether</a>'s treasury holdings, which now exceed $90 billion, and highlighted its influence in the crypto sector.</p>  
<p>The transaction comes as Lutnick has been in much bigger news - being nominated by the <a href="https://coincu.com/293149-president-elect-donald-trump-crypto-role/" target="_blank" rel="noopener noreferrer nofollow">Trump</a> administration to take on the role of Secretary of the Commerce Department. Still pending Senate confirmation, Lutnick has indicated he plans to relinquish his duties with Cantor Fitzgerald and divest his interests in his companies amid strict ethics regulations.</p>  
<h2 class="wp-block-heading" id="tether-under-investigation-as-regulatory-pressure-mounts">Tether Under Investigation as Regulatory Pressure Mounts</h2>  
<p>The relationship of Cantor Fitzgerald with Tether contrasts with the cautiousness of other Wall Street firms in recent times, especially after the <a href="https://coincu.com/176661-first-citizens-to-buy-silicon-valley-bank/" target="_blank" rel="noopener noreferrer nofollow">2023 Silicon Valley Bank collapse</a>, which further raised scepticism toward cryptocurrency businesses. Yet despite these challenges, Cantor <a href="https://www.wsj.com/finance/currencies/wall-street-firm-oversees-billions-of-dollars-backing-tether-b56c68c1" target="_blank" rel="noopener noreferrer nofollow">managed</a> more than half of Tether's stablecoin reserves as of February, earning fees for its services.</p>  
<p>Tether continues to be investigated by the US Treasury and Justice departments on suspicion of violating anti-money laundering sanctions laws. Cantor's partial ownership of Tether's $134 billion in assets, which are composed mostly of U.S. Treasury bills, demonstrates how pivotal it is in the ecosystem.</p>  
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Cantor Fitzgerald Will Acquire 5% Ownership Interest in Tether

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