Also need to cooperate with BTC lending! The company under the future US Deputy Secretary of Commerce has invested $600 million in Tether

Cantor Fitzgerald's CEO and major shareholder, Howard Lutnick, has been nominated by US President-elect Donald Trump to serve as the US Secretary of Commerce. Lutnick also previously served as co-chair of Trump's transition team. This may signify a shift in US policy towards supporting the Crypto Assets sector.

Cantor has strengthened its relationship with stablecoin issuer Tether over the past year. According to the Wall Street Journal, Cantor has acquired a 5% stake in Tether, worth up to $600 million, making Tether's valuation reach approximately $12 billion.

According to Bloomberg, Cantor is reportedly discussing obtaining support from Tether and intends to lend billions of dollars to clients, with BTC as collateral. Another source said that the funding for this plan is estimated to start at $2 billion, with an expected final scale of several tens of billions of dollars.

Tether's leadership sees Luttnick as an important ally in opposing proposed legislation aimed at tightening regulation of stablecoins such as USDT.

Sources revealed that Giancarlo Devasini, the largest shareholder and CFO of Tether, privately disclosed earlier this year that Lutnick would use his political influence to try to resolve the threats facing Tether.

A spokesperson clarified to the media that "The relationship between Tether and Cantor is purely professional and based on managing reserves. The claim that Luttneyk's participation in the Trump transition team is to influence regulatory actions is ridiculous."

Tether's issuance, USDT pegged to the US dollar, is currently the largest stablecoin in terms of market capitalization. Insiders familiar with Cantor's business revealed to the media that Tether primarily utilizes Cantor's custodial services, holding billions of dollars in US Treasury bonds, which support the value of USDT. The same insiders also pointed out that this custodial relationship generates tens of thousands of dollars in annual revenue for Cantor.

Last month, there were reports that the US Department of Justice is conducting a criminal investigation into Tether to determine whether it is being used by third parties for illegal activities such as terrorist financing and hacking. The US Treasury Department has also been considering sanctioning Tether because USDT, this stablecoin, has been used by individuals and groups that are already under US sanctions.

Tether CEO Paolo Ardoino said at the time, "There is no indication that Tether is being investigated," "The Wall Street Journal is rehashing old news," and "needless to say".

Tether has grown significantly, with the latest financial report showing a profit of 7.7 billion US dollars in the first 9 months of this year.

Last Wednesday, Lutnick said that once the Senate confirms his Treasury Secretary nominee, he will step down from his positions at Cantor, BGC, and Newmark. He said in a statement:

I intend to divest from these companies in order to comply with the ethical rules of the U.S. government, and no arrangements involving the sale of stocks on the public market are expected.

Two informed sources revealed that as Lutnick takes over as head of the Ministry of Commerce, he is preparing to transfer the company and its business relationship with Tether to his colleague. Lutnick's son, Brandon Lutnick, works as a trader at Cantor and previously interned at Tether in Switzerland.

〈Still need to cooperate with BTC lending! A company under the future U.S. Secretary of Commerce's flag invests $600 million in Tether〉This article was first published in "Blocklike".