Financial firm Cantor Fitzgerald has agreed to acquire a 5% stake in stablecoin issuer Tether for $600 million, according to WSJ, citing its own sources.
Howard Lutnick, CEO and principal shareholder of Cantor Fitzgerald, serves as co-chair of the transition team for U.S. President-elect Donald Trump. On November 19, Trump nominated the entrepreneur for the position of Secretary of Commerce in the incoming administration.
According to the publication, Tether’s leadership views Lutnick as a key ally in countering regulatory pressure on the stablecoin sector.
Giancarlo Devasini, the main shareholder of the company, allegedly stated earlier this year:
“Lutnick will use his political influence to try to neutralize the threats facing Tether.”
A WSJ source emphasized that the companies’ relationship is strictly professional and based on reserve management. Claims that the entrepreneur’s role in the transition team allows him to influence regulators were called “ridiculous.”
Cantor Fitzgerald holds the majority of Tether’s assets, valued at $133 billion, earning “tens of millions of dollars” annually in fees.
The stablecoin issuer reported a net profit of $7.7 billion for the year to date at the end of the third quarter.
In October, WSJ reported on a U.S. government investigation into potential violations by Tether of sanctions and anti-money laundering regulations. The company’s CEO, Paolo Ardoino, denied this information.