Cantor Fitzgerald’s Tether stake could generate as much as $25 billion if Tether’s private fundraising achieves a $500 billion valuation; Cantor holds a convertible bond tied to roughly 5% equity subject to final conversion terms and sale permissions.
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Potential $25 billion windfall
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Convertible bond purchased for over $600 million grants rights to ~5% equity pending conversion and sale approvals
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Tether’s USDT supply sits at about $180.6 billion; a $500 billion private valuation would rank Tether among the largest private companies
Cantor Fitzgerald Tether stake could yield $25B if Tether hits $500B — read our expert analysis and implications for Wall Street and crypto investors.
By COINOTAG — Published: 2025-10-16 — Updated: 2025-10-16
How could Cantor Fitzgerald’s Tether stake yield $25 billion?
Cantor Fitzgerald Tether stake is anchored in a convertible bond purchase of just over $600 million that, under the final transaction terms, would allow Cantor to convert into roughly 5% equity. If a private fundraising values Tether at $500 billion, that equity stake would be worth about $25 billion, contingent on conversion and resale permissions.
What are the deal mechanics and key conditions?
The convertible instrument grants Cantor rights to equity only if conversion is permitted under the final deal terms and if Cantor can sell any converted shares. Bloomberg reports the bond purchase occurred more than a year ago. The upside hinges on three moving parts: the final valuation agreed with new investors, legal and contractual conversion clauses, and any lock-up or resale restrictions that could limit immediate monetization.
What regulatory and governance risks could affect the valuation?
Tether’s private valuation faces regulatory scrutiny and governance considerations. The White House and the Trump administration released a stablecoin regulatory framework in July, increasing oversight expectations for issuers. Regulatory actions, changes in reserve disclosures, or enforcement outcomes could materially alter investor appetite. Industry observers point to Tether’s dominant USDT supply — roughly $180.6 billion in circulation — as both a strength and a potential regulatory focal point.
Frequently Asked Questions
How much did Cantor Fitzgerald invest in the convertible bond and what equity does it represent?
Cantor bought a convertible bond worth just over $600 million that grants rights to approximately 5% equity, according to reporting. Conversion and the ability to sell any resulting shares depend on final contractual terms and approvals; the $25 billion figure assumes a $500 billion company valuation.
Could Cantor immediately realize gains if conversion is allowed?
If conversion is permitted, Cantor’s ability to monetize the stake may still be constrained by lock-ups, resale approvals, or market absorption limits. In practice, large private stakes are often sold gradually or to strategic new backers to limit market disruption.
Key Takeaways
- Large conditional upside: Cantor’s convertible position could be worth about $25 billion at a $500 billion Tether valuation, transforming the firm’s balance sheet returns.
- Conversion and sale constraints: The gain depends on contractual conversion rights and any resale permissions or lock-up provisions.
- Regulatory backdrop matters: U.S. stablecoin regulation and governance scrutiny are critical variables that could affect investor sentiment and valuation outcomes.
Conclusion
The Cantor Fitzgerald Tether stake highlights how structured convertible financing can deliver outsized returns if a private valuation target is met. With Tether’s USDT supply at approximately $180.6 billion and a potential $500 billion fundraising on the table, the arrangement would reshape Cantor’s financial profile while raising regulatory and execution questions. COINOTAG will continue to monitor official disclosures and reporting from Bloomberg and statements from company executives as the situation develops; readers should watch for finalized deal terms and regulatory updates.
Sources and context (plain text): Bloomberg reporting; statements from Howard Lutnick and Brandon Lutnick at public events; remarks from Tether executives including Paolo Ardoino; U.S. administration stablecoin framework published in July (public documents).
