US investment bank Cantor may net $25b if Tether hits $500b: sources

Cantor Fitzgerald LP could see its stake in Tether Holdings reach a potential value of US$25 billion if Tether achieves its goal of raising about US$15 billion at a US$500 billion valuation, Bloomberg reported, citing a person familiar with the matter.

Cantor Fitzgerald, a New York-based investment bank, bought a convertible bond in Tether worth over US$600 million more than a year ago, which could translate into 5% equity if converted.

The exact terms of any share sale, including the final valuation and Cantor’s ability to sell its stake, remain uncertain.

Tether, whose USDT stablecoin is the world’s largest by market cap at US$180.6 billion, has been a key client for Cantor Fitzgerald.

If Tether’s valuation target is met, chairman Giancarlo Devasini could become one of the world’s richest individuals, according to previous Bloomberg estimates.

Cantor Fitzgerald’s recent net revenue was about US$2 billion in 2024, though the firm does not publicly disclose full financial results.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Tether’s $500B pitch rests on unaudited reserves and regulatory gaps

Tether holds about $98 billion in U.S. Treasury bills 1 and $8 billion in gold 2. It has never completed a full independent audit of its reserves 2. Its path under the GENIUS Act is unclear 3.
BDO publishes quarterly attestations 4, yet these are not a full audit that verify complete backing of $180.6 billion USDT in circulation.
Q1 2025 operating profit topped $1 billion with $5.6 billion in excess reserves (assets above liabilities) 4. The missing audit limits investor views on credit risk and the $500 billion pitch.

Payment firms can win share with stablecoin rails under new law

The GENIUS Act (the new U.S. federal stablecoin law) takes effect on the earlier of January 18, 2027 or 120 days after implementing regulations 3. It lets fintechs apply as federal qualified payment stablecoin issuers (a federal licensing category under the Act) to bypass 49 state money transmitter licenses in many cases 5.
Companies can run cross-border remittances, bill pay, and prepaid cards on stablecoin rails (payment infrastructure that moves dollars via tokenized dollars) with 1:1 USD reserves in cash or short-dated U.S. Treasuries under federal or qualifying state oversight 3.
Treasury opened rulemaking with an advance notice on September 19, 2025 6. Key restrictions phase in by the effective date 3. Subsidiaries of insured depository institutions (FDIC-insured banks and similar entities) are eligible permitted issuers, pending approval by their primary federal regulator 3.