The financial services giant Cantor Fitzgerald has reportedly acquired a 5% ownership stake in Tether, the leading stablecoin firm.
The Wall Street Journal, citing unnamed business associates of both firms, reports that Cantor values the stake at up to $600 million.
[adinserter block="1"]Cantor has served as Tether’s custodian since 2021.
Last week, President-elect Donald Trump nominated Cantor’s chief executive, Howard Lutnick, to serve as U.S. Secretary of Commerce. Lutnick is a co-chair of Trump’s transition team.
The WSJ, again citing unnamed business associates, reports that Tether chief financial officer (CFO) Giancarlo Devasini privately said earlier this year that Lutnick will attempt to use his political sway to protect the controversial stablecoin firm.
Devasini owns roughly 47% of Tether, according to an analysis conducted by Forbes.
Last month, the Wall Street Journal reported that the U.S. Department of Justice had launched an investigation into Tether over possible violations of sanctions and anti-money-laundering rules. The outlet cited “people familiar with the matter.”
In a report earlier this year, the United Nations Office on Drugs and Crime (UNODC) claims criminals in East and Southeast Asia prefer to use Tether’s dollar-pegged stablecoin, USDT, on the Tron (TRON) blockchain due to its stability, ease, anonymity and low transaction fees.
The UNODC said fraudsters and money launderers tend to funnel the USDT, the largest stablecoin by market cap, through online gambling platforms that are often operating illegally.
Tether, however, pushed back against the UNODC’s allegations, arguing that USDT’s trackability makes the asset “an impractical choice for illicit activities.” The firm also points to its collaboration with law enforcement agencies.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
