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Tether has transformed from an object of skepticism into a stable investment thanks to its partnership with Cantor Fitzgerald.
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With Cantor Fitzgerald managing Tether’s reserves, transparency concerns have significantly diminished.
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Tether’s institutional backing has shifted its reputation from controversial to credible.
This article explores how Tether’s partnerships with Cantor Fitzgerald and SoftBank are reshaping its reputation and positioning it as a formidable player in the stablecoin market.
Cantor Fitzgerald: Inside the Tether Cantor Fitzgerald Partnership
Cantor Fitzgerald’s strategic partnership with Tether in 2021 marked a pivotal shift in the latter’s operational dynamics. Following Howard Lutnick’s appointment as U.S. Commerce Secretary, Cantor assumed the role of primary custodian for Tether’s U.S. Treasury reserves.
As of late 2024, Cantor was responsible for 80% of Tether’s $132 billion reserves, growing to 99% shortly thereafter. This drastic increase has quelled past doubts regarding the solidity of Tether’s backing, with a well-established brokerage safeguarding substantial assets.
Cantor Puts Its Money Where Its Mouth Is
Beyond custodial duties, Cantor Fitzgerald further solidified its commitment by acquiring a 5% equity stake in Tether, valued at approximately $600 million. Although Lutnick stepped back to comply with ethics requirements, his family’s ongoing involvement signifies a deep-rooted relationship.
Reports suggest that Brandon Lutnick, who once interned at Tether, now leads Cantor Fitzgerald, ensuring a personal stake in Tether’s success. This public commitment mitigates skepticism surrounding Tether’s reserves, aligning both firms’ interests as they navigate regulatory landscapes together.
Proud to play a role in the extraordinary partnership between @Tether_to and @SoftBank, two companies shaping the financial future.
Known as “Twenty One,” the partnership aims to fulfill the rising demand for Bitcoin among institutional investors—
Brandon Lutnick, April 23, 2025.
By managing Tether’s Treasury assets and investing in equity, Cantor acts as a protective shield against regulatory scrutiny. This collaboration implies that Tether’s operations now come with a layer of credibility that was previously absent.
SoftBank’s Involvement: Global Legitimacy and Influence
April 2025 saw SoftBank join the Tether-Cantor venture, investing $900 million into 21 Capital, which will focus on Bitcoin-related investments. Tether, alongside Bitfinex, holds a majority stake within this entity, adding financial clout to its portfolio.
SoftBank’s reputation for thorough due diligence enhances Tether’s legitimacy; the Japanese conglomerate’s track record of successful investments spans various industries, signaling confidence in the stablecoin’s future.
“Masa is looking to establish a Bitcoin-AI-energy ecosystem,” suggested industry analysts, hinting at strategic growth potential for Tether in upcoming markets—matthew sigel, April 23, 2025.
The formation of 21 Capital represents a reputational boost for Tether. This partnership, combined with SoftBank’s extensive global network, enables Tether to position itself more favorably among regulators, emphasizing corporate governance and accountability.
Bitfinex: Reinforcing an Internal Alliance
Bitfinex, under the iFinex umbrella with Tether, has historically attracted scrutiny. However, its recent contributions to 21 Capital—totaling $600 million in Bitcoin—reinforce the alignment between the two entities, enhancing stability and trust.
Maintaining cohesion between Tether and Bitfinex minimizes risks associated with operational discrepancies. With Bitfinex being a principal trading platform for USDT, their integrated strategy solidifies both firms’ market positions. Increased transparency through public disclosures linked to 21 Capital could also bolster regulatory compliance.
21 Capital: The Culmination of the Tether Cantor Fitzgerald Partnership
In summary, 21 Capital represents the culmination of Tether’s evolving ambitions and its strategic alliances. With plans for a Nasdaq listing under the ticker symbol “XXI,” led by CEO Jack Mallers, Tether is eyeing serious institutional recognition.
This development signals a new era for Tether as it adapts to public company standards, integrating regulatory oversight and transparency—a shift that may quell historical criticisms of its opaque operations.
Though Tether’s core stablecoin model remains intact, its substantial Bitcoin treasury of over 42,000 coins will provide stakeholders a clearer insight into its broader ecosystem, enhancing accountability.
The established partnerships indicate that Tether is not merely a crypto company but a significant player poised to compete with publicly traded firms holding major Bitcoin assets. The combination of Cantor and SoftBank’s corporate governance ensures that Tether operates at the highest legitimacy levels.
Crypto’s Biggest Cloud of Uncertainty Is Now a Ray of Sunshine
With Cantor Fitzgerald serving as a custodian for Tether’s reserves and SoftBank providing a credible global presence, Tether has decisively altered its trajectory. Critics can no longer characterize Tether as operating in isolation; rather, it stands shoulder-to-shoulder with financial giants.
The implications of these relationships are profound. As markets for stablecoins continue to mature, Tether’s prominent positioning, combined with increasing regulatory scrutiny, ultimately will demand a commitment to operational integrity.
As Tether prepares for its anticipated Nasdaq debut via 21 Capital, it showcases a uniquely transformative narrative for the once-controversial stablecoin. While challenges remain, advancements in compliance and corporate governance signal a promising path forward.
“Markets need reliable money to measure value efficiently,” underscores Jack Mallers, emphasizing a collective shift towards higher standards within the cryptocurrency landscape.
