For years, Tether has been the target of relentless scrutiny, from questions about its reserves to speculation of regulatory action. Yet, in a stunning turn of events, the world’s largest stablecoin is now more entwined with U.S. financial interests than most imagined.
The numbers and the connections paint a clear picture: Tether isn’t just surviving. It’s thriving, backed by Wall Street powerhouses and quietly integrated into the U.S. debt market itself.
According to a post by John Deaton on X, one of the most striking revelations is that Cantor Fitzgerald, a global financial firm primarily controlled by Howard Lutnick, now the U.S. Commerce Secretary, holds a convertible debt position in Tether’s holding company. Valued at around $600 million, this position equates to a potential 5% stake, implying a $12 billion valuation for Tether. Though structured as debt, the deal is widely viewed as quasi-equity due to its conversion potential, effectively linking U.S. leadership to a once-controversial stablecoin.
Cantor’s influence doesn’t stop at its investment. The firm reportedly manages much of Tether’s $133 billion reserves in U.S. Treasury bills — directly tying Tether’s operations to America’s debt markets.
This creates a scenario where Tether, once viewed as an offshore threat, is deeply embedded in the U.S. financial system, supporting demand for Treasuries while fueling the global stablecoin market.
Ardoino Highlights Tether’s Close Government Ties
In an interview, Tether CEO Paolo Ardoino confirmed the company’s strong relationship with U.S. authorities, a critical advantage over competitors. For those unfamiliar with crypto, think of it this way: a storeowner with strong ties to local authorities operates confidently, knowing they comply with the rules and have support if needed. Tether is that store, maintaining legal and transparent operations in sync with regulators.
This relationship, combined with its vast Treasury holdings, helps position Tether as one of the most trusted and regulated stablecoins — a sharp contrast to its earlier reputation.
Crypto-Friendly Officials at the Helm of U.S. Economic Policy
The growing alignment between Tether and the U.S. isn’t accidental. Both Commerce Secretary Lutnick and Treasury Secretary Scott Bessent are known crypto advocates. Lutnick has publicly stated his personal Bitcoin investments run into the hundreds of millions, while Bessent has openly championed digital assets.
Adding to the momentum, the U.S. Strategic Reserve has reportedly started acquiring Bitcoin, with plans to expand into other digital assets — a move directed by President Trump himself. This signals a shift from skepticism to strategic adoption at the highest levels of government.
With bipartisan stablecoin legislation reportedly heading toward President Trump’s desk, the landscape is changing fast. Industry leaders, including Ripple CEO Brad Garlinghouse, predict the stablecoin market will increase 10x in the next five years, driven by Tier-1 banks moving aggressively into digital asset custody.
The rivalry between Tether and Circle’s USDC is heating up, with Ripple also entering the fray with its RLUSD stablecoin. The message is clear — stablecoins are no longer fringe finance. They’re mainstream, and the U.S. wants a piece of the action.
The Takeaway
What was once unthinkable is now reality. Tether, once considered the weak link of crypto, is now tied to U.S. debt markets, managed by Wall Street heavyweights, and indirectly linked to government officials with billions riding on digital assets.
With the global stablecoin race accelerating and regulatory clarity finally within reach, Tether’s position looks stronger than ever. One thing is clear for investors watching from the sidelines: crypto is no longer the outsider. It’s becoming national policy.
