Howard Lutnick, the powerhouse behind Cantor Fitzgerald, is officially stepping away from all his business roles.
With his nomination as Commerce Secretary under President-elect Donald Trump, Lutnick is clearing the deck. He’s exiting his leadership positions at Cantor Fitzgerald, BGC Partners, and Newmark to comply with ethics rules.
Cantor is handing over a multibillion-dollar deal with Tether, the controversial crypto company, to his son, Brandon Lutnick. Brandon, a 20-something with Tether experience, interned in Lugano, Switzerland, counting gold bars for the company’s $660 million gold-backed token, Tether Gold.
A $2 billion Bitcoin lending program
Cantor Fitzgerald and Tether are reportedly crafting a lending program that could redefine Bitcoin’s role in traditional finance. The program would let clients borrow U.S. dollars against Bitcoin collateral, starting with $2 billion.
Tether is expected to lead the charge, but other financial heavyweights may join the initiative. Recruitment for the project is already underway at Cantor, with a full-throttle approach.
The company currently manages the lion’s share of Tether’s $132 billion reserves through its custody business, a relationship that rakes in tens of millions annually.
Cantor also holds a 5% stake in Tether, valued at $600 million. The lending program, if successful, could amplify these numbers, making the partnership even more lucrative.
What’s at stake?
Critics have long questioned whether Tether holds adequate reserves to back its stablecoins. At the Nashville Bitcoin Conference in July, Lutnick tried to squash those doubts. “I basically told Tether CFO Giancarlo Devasini, ‘Show me the money.’ And we found every penny,” he said.
Skeptics aren’t convinced. A U.N. report in January flagged Tether’s USDT stablecoin as a preferred tool for money laundering. Meanwhile, the U.S. Treasury Department is lobbying Congress for powers to block stablecoin transactions tied to illicit activity.
Tether insists it’s playing by the rules, claiming it actively supports law enforcement. Whether these assertions hold water remains a hot debate.
For Cantor, the stakes are just as high. Fitch Ratings has pointed out the “key person risk” tied to Lutnick’s leadership. His outsized influence over Cantor’s strategy and relationships has been a double-edged sword. With him gone, the firm faces uncertainty, especially as it doubles down on crypto.
Power moves and political drama
Lutnick’s nomination as Commerce Secretary has stirred up its own whirlwind of controversy. Known for his sharp elbows and relentless ambition, Lutnick reportedly fought tooth and nail to secure the Treasury Secretary nomination, a role that ultimately went to hedge fund manager Scott Bessent.
Sources describe the battle as a “hunger-games style” clash within Trump’s transition team. Despite losing out on Treasury, Lutnick’s reputation as a ruthless operator precedes him.
“The long knives are out for Howard Lutnick,” one senior Trump official said, referring to the fallout from his failed Treasury bid. Trump himself, however, seems to value Lutnick’s loyalty and business acumen.
The president-elect reportedly lunched with Lutnick and Elon Musk over the weekend, a photo-op that hints at Lutnick’s continued proximity to power.
But even with Trump’s backing, Lutnick’s aggressive style has left him with few allies in the transition team.
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