Stablecoin leader Tether has made headlines with a massive $5 billion issuance spree over 72 hours, sparking intrigue and concern in financial circles due to its historical role in driving market liquidity.
Howard Lutnick, CEO of Cantor Fitzgerald and a key figure in Donald Trump’s transition team, has been a prominent defender of Tether’s financial stability.
This coincides with Trump nominating Lutnick for secretary of commerce, raising questions about the intersection of politics and crypto.
Amid these developments, the U.S. Attorney’s Office for the Southern District of New York continues to investigate Tether for potential illicit activities, including concerns over terrorism financing.
At the same time, Cantor Fitzgerald has become a critical banking partner for Tether as global banks increasingly distance themselves from the stablecoin issuer.
Data from SpotOnChain reveals Tether’s strategic issuance timeline.
On Nov. 6, Tether minted $1 billion as Bitcoin surged to a record high of $76,200.
Another $2 billion was issued on Nov. 9 and 10, pushing Bitcoin past $80,000.
A final $2 billion injection brought the total to $5 billion, propelling Tether’s market cap to $124 billion and later to $132 billion.
Tether’s expanded supply has provided liquidity to centralized and decentralized exchanges, with 24-hour trading volume reaching $289 billion.
Historically, USDT supply increases have coincided with major cryptocurrency gains, including Bitcoin nearing $100,000, fueled by optimism surrounding Trump’s return to the presidency.
Lutnick’s involvement has drawn scrutiny.
While publicly endorsing Tether’s reserves and balance sheet, he has not provided concrete proof of these claims.
Adding intrigue, Cantor Fitzgerald now owns a 5% stake in Tether, valued at $600 million, potentially aligning the company with political support from Trump’s administration.
Lutnick has suggested he may step down as Cantor Fitzgerald’s CEO if confirmed as commerce secretary but could assume another role.
His silence on Tether’s opaque practices contrasts with his vocal criticism of Federal Reserve policies, adding complexity to his position.
