The partnership between Tether and Cantor Fitzgerald has reconstructed Tether's credibility and quieted long-standing skepticism about USDT. By collaborating with other financial giants and launching "21 Capital", Tether appears to have quietly secured legitimacy on Wall Street.
The result? Tether has become closer to Wall Street than most traditional banks and has become more institutionalized than the biggest skeptics ever imagined. This analysis examines how Tether's partnership with Cantor Fitzgerald and SoftBank enhances its credibility, reduces regulatory risks, and positions the USDT issuer as a mainstream powerhouse.
Inside Cantor Fitzgerald's Tether Partnership
Cantor Fitzgerald, a Wall Street brokerage giant, established a partnership with Tether in 2021, before Howard Lutnick entered government service. As the U.S. Secretary of Commerce, Lutnick is responsible for overseeing policies and programs related to economic growth, job creation, trade, industry, innovation, and data collection.
This early partnership meant Cantor became the primary custodian of Tether's U.S. Treasury reserves.
By the end of 2024, Cantor already held approximately 80% of Tether's $132 billion. Months later, this increased to 99% of Tether's treasury holdings. Skeptics who once claimed Tether's reserves were as intangible as a unicorn must now acknowledge that a respected brokerage is guarding almost all assets.
Cantor Walks the Talk
Cantor did more than just serve as Tether's vault. At the end of 2024, Cantor acquired a 5% stake for approximately $600 million. According to media reports, Howard Lutnick relinquished his stake in Cantor Fitzgerald to meet Commerce Secretary ethics requirements, but his son Brandon Lutnick is now chairman, suggesting continued family involvement.
[The translation continues in the same manner for the rest of the text, maintaining the specified translations for specific terms.]Bitfinex Strengthens Internal Alliance
Bitfinex and Tether share ownership under the umbrella of iFinex and have been subject to significant scrutiny.
Now, Bitfinex has participated in 21 Capital with Tether and SoftBank, investing $600 million through Bitcoin contribution. Together, Tether and Bitfinex will hold the majority stake. This allows Tether to firmly take the wheel with SoftBank riding along.
How does this help Tether's risk profile? First, Bitfinex is a major cryptocurrency exchange where USDT is heavily traded. Bitfinex and Tether staying on the same page reduces the possibility of confusing public disputes or inconsistencies. When Tether thrives, Bitfinex benefits, and vice versa.
Bitfinex's listed vehicle participation increases transparency. While the exchange itself remains private, some activities within 21 Capital will be public. This indirectly encourages Bitfinex to maintain its system. If regulatory authorities investigate, they will see a venture partially integrated into Nasdaq reporting systems.
21 Capital: Fruits of Tether-Cantor Fitzgerald Partnership
All these partnerships converge at 21 Capital. The newly established investment vehicle will be listed on Nasdaq with the ticker symbol "XXI". Famous Bitcoin entrepreneur Jack Mallers is set to lead as CEO.
This represents a significant leap for Tether's institutional ambitions. Becoming part of a listed company means responding to SEC rules, quarterly disclosures, and endless analyst questions. Those who criticized Tether for being opaque will need new material. Some of Tether's operations will now be under public market scrutiny.
Of course, Tether's stablecoin business is not completely merged with the SPAC. However, 21 Capital's large BTC vault - starting with 42,000 BTC - will be a window into Tether's extensive ecosystem. Investors can observe the performance of these assets connected to Tether.
This represents a level of transparency not seen in Tether's previous model.
Control remains in Tether's hands, meaning Tether gains public market credibility without handing the company's keys to external shareholders. Tether also firmly establishes its position as a major player holding substantial Bitcoin. It demonstrates strategic thinking similar to corporate entities like MSTR, but with a more direct connection to the global stablecoin giant.
Cantor Fitzgerald's role as SPAC sponsor and SoftBank as co-investor suggests corporate governance is not a secondary consideration. If 21 Capital engages in suspicious behavior, Cantor's brand would be at risk, and SoftBank's capital would be jeopardized.
This stage puts Tether in direct competition with other listed Bitcoin-centric companies. 21 Capital's war chest is substantial from day one, allowing it to act as a major institutional buyer or holder. Strong performance in the public market could potentially strengthen Tether's stablecoin business.
Cryptocurrency's Greatest Uncertainty, Now Hope
Cantor's management of Tether's reserves and company stake has brought a traditional financial powerhouse to Tether's side. SoftBank's participation adds another layer of credibility and opens a global network for Tether's expansion.
These moves significantly reduce the regulatory and reputational risks that once overshadowed Tether. Now that Tether is closely linked with well-established corporate giants, it becomes harder for critics to portray Tether as a "bad actor". The listing requirements, Cantor's oversight, and SoftBank's due diligence each compel Tether to maintain higher standards.
"Markets need trustworthy money to measure value and allocate capital efficiently." – Jack Mallers, 21 Capital CEO
This doesn't mean Tether is absolved of responsibility. The stablecoin sector remains a primary target for global regulators, and Tether's leadership will face pressure to maintain complete transparency. Mistakes could put Cantor and SoftBank in a difficult position, which is something Tether and its partners want to avoid.
When Tether started in 2014 and introduced the US dollar peg, few would have anticipated it would be positioned in Wall Street's top tier and connected with giant corporations like SoftBank. Yet now we see Tether preparing for a Nasdaq debut through 21 Capital (date still unspecified).
Tether still needs to satisfy regulators and oversight agencies, but it has made significant progress. Thanks to the Tether-Cantor Fitzgerald partnership, Rootnik family ties, and SoftBank's influence, stablecoins now carry a distinct corporate atmosphere.
