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.
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.
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Conor Devitt
https://dailyhodl.com/2024/11/26/wall-street-firm-strikes-deal-with-tether-agrees-to-acquire-600000000-stake-in-stablecoin-issuer-report/
2024-11-26 19:45:34
