Blumenthal puts Cantor's Tether stake at $10 billion in a records demand to Brandon Lutnick
Senator Richard Blumenthal asked Brandon Lutnick, the Commerce Secretary's son, to explain Cantor Fitzgerald's ties to Tether, whose US reserves Cantor holds. Cointelegraph reported his estimate that the stake is worth $10 billion, a holding he can question now and could subpoena records on if Democrats take the Senate.
The Investor · Invest desk
What happened
- Cantor is also asked whether it requires independent audits of Tether and whether it has ever reviewed ending the partnership.
- A Democratic staff report from the same subcommittee last month alleged that USDT has become a key tool for Iran's shadow banking network.
- Kalshi puts Democrats' odds of a Senate majority at 61% and Polymarket at 64%, up from roughly even several weeks ago.
Why it matters
- Who's exposed exposure A Democratic Senate would let committees compel the divestiture terms and Lutnick family communications, putting most of the political exposure on the family side of the deal.
- Who has to decide decision Cantor must choose by October 23 how much to hand voluntarily to a minority senator whose odds of gaining subpoena power the markets now put above even.
- What it limits constraint The letter itself asks only for records; anything that reaches Tether's conduct directly would come from the Treasury and Justice Department sanctions inquiries Blumenthal has requested.
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Blumenthal's estimate of the stake is the largest number in the letter. He puts Cantor's holding at $10 billion, up from $600 million since Trump returned to office [3], a gain of roughly 17 times [20]. Cointelegraph describes the holding as rights to a 5% stake that Cantor acquired in 2024 [8]. If the percentage has not changed, $10 billion values all of Tether at about $200 billion [21], and the $600 million starting point values it at about $12 billion [22]. These are a senator's estimates. Neither Cantor nor Tether immediately responded to requests for comment [17].
The custody business is older and harder to price. Cantor began holding part of the Treasuries behind Tether's reserves in 2021 and reportedly custodies tens of billions of dollars of Tether's Treasury bills [10]. Neither report includes a custody fee. Blumenthal ties the income streams together. "Just as Tether has made untold millions in interest and investments from the stablecoins used in these illicit activities, so has Cantor Fitzgerald profited from its relationship with Tether," he wrote [5].
Custody also explains why the letter went to Cantor. "While Tether claims to operate out of El Salvador, the vast majority of its assets reside in the United States under your custodianship," Blumenthal wrote [11]. On his account, an issuer that says it is based abroad keeps most of its assets with a US firm, and that firm is now chaired by one of Howard Lutnick's sons, with the other as vice chairman [13].
For now the letter is a request. As a minority member Blumenthal has limited authority, and a Democratic majority next year could put him and his colleagues atop committees with subpoena power [18]. Kalshi gives Democrats a 61% chance of the Senate and Polymarket 64%, up from close to even several weeks ago [19]. Cantor's answers are due October 23 [16], before the vote.
If Democrats fall short, a chance the markets put at 36% to 39% [23], Blumenthal keeps only the power to ask [18]. If they win, his requests for Howard Lutnick's divestiture terms and any Tether financing of the ownership transfer to his children [12] become candidates for compulsion, along with Lutnick's communications about Tether after he left Cantor [14]. A third route runs through the Treasury and Justice Department, which Blumenthal has asked to investigate potential sanctions violations [7]. Tether says it has worked with law enforcement for years and has frozen nearly $550 million of Iran-linked USDT this year [9].
I think the custody contract is the least exposed part of this. The questions with money attached concern the family: more than $250 million to Howard Lutnick since Trump returned, including a $192 million Cantor distribution [4], so no more than about three quarters arrived as that single Cantor payout [24]. The counter-case sits in the letter itself, which asks whether Cantor has ever reviewed ending the partnership [15]. A custodian facing subpoenas over its sanctions safeguards could drop the custody line and keep a stake Blumenthal values at $10 billion [3]. Tether moving its reserves away from Cantor would prove me wrong.
What to watch
- Whether Cantor's reply, due October 23, says it has ever reviewed terminating the Tether partnership.
- The November Senate result, and which Democrats would chair committees with subpoena power over Blumenthal's requests.
- Any Treasury or Justice Department response to Blumenthal's call for a sanctions investigation of Tether.
Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.
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- [1]
Senator Richard Blumenthal, the top Democrat on the Senate Permanent Subcommittee on Investigations, sent a letter Thursday to Cantor Fitzgerald's Brandon Lutnick requesting information on the firm's relationship with Tether.
- [2]
Brandon Lutnick is the son of Commerce Secretary Howard Lutnick, who handed him the company's leadership when he joined the Trump administration.
- [3]
Blumenthal alleges that Cantor's stake in Tether increased in estimated value from $600 million to $10 billion since Trump returned to office.
- [4]
Blumenthal alleges Howard Lutnick received more than $250 million since Trump returned to office, including a $192 million distribution from Cantor Fitzgerald.
- [5]
"Just as Tether has made untold millions in interest and investments from the stablecoins used in these illicit activities, so has Cantor Fitzgerald profited from its relationship with Tether," Blumenthal wrote.
- [6]
Cantor holds and manages Tether's reserves in the US, and the two companies share a number of other business interests.
- [7]
The letter follows a report last month by Democratic investigators on the Senate Permanent Subcommittee on Investigations alleging Tether's USDT has become a key tool for Iran's shadow banking network; Blumenthal called on the Treasury and Justice Department to investigate potential sanctions violations.
- [8]
Cantor Fitzgerald acquired rights to a 5% stake in Tether in 2024; Howard Lutnick helped negotiate the investment in April 2024.
- [9]
Tether said it has been working with law enforcement for years and has frozen nearly $550 million in Iran-linked USDT this year.
- [10]
Cantor's relationship with Tether began in 2021, when it started acting as custodian for a portion of the US Treasuries backing Tether's reserves; it reportedly custodies tens of billions of Tether's US Treasury bill reserves.
- [11]
"While Tether claims to operate out of El Salvador, the vast majority of its assets reside in the United States under your custodianship," Blumenthal wrote.
- [12]
Blumenthal is seeking the terms of Howard Lutnick's divestiture from Cantor and details of any loan or financing Tether provided to Lutnick or his family to facilitate the transfer of ownership to his children.
- [13]
Howard Lutnick stepped down from Cantor after Senate confirmation as commerce secretary in February 2025; the firm named his son Brandon chairman and his other son vice chairman.
- [14]
Blumenthal asked Cantor to explain how it monitors Tether's compliance with banking and sanctions laws and to provide all communications involving Howard Lutnick about Tether, including after he left Cantor.
- [15]
Blumenthal asked whether Cantor requires independent audits of Tether and whether it has ever reviewed terminating the partnership.
- [16]
Blumenthal has asked Cantor to respond by Oct. 23.
- [17]
Neither Cantor Fitzgerald nor Tether immediately responded to requests for comment.
- [18]
Blumenthal and other Democratic critics have limited authority as members of the minority party; a Democratic majority next year could put them atop committees with subpoena power to compel information and testimony.
- [19]
Kalshi puts Democrats' chance of a Senate majority at 61% and Polymarket at 64%, up from closer to 50-50 several weeks ago; both show more than 90% odds of a House majority shift.
- [20]
Blumenthal's estimate implies the stake grew roughly 17-fold.
- [21]
If the stake is still 5%, a $10 billion value implies about $200 billion for all of Tether.
- [22]
At 5%, the $600 million starting value implies about $12 billion for all of Tether.
- [23]
Prediction markets put the chance Democrats do not win the Senate majority at 36% to 39%.
- [24]
The $192 million Cantor distribution is at most about 77%, roughly three quarters, of the more than $250 million Blumenthal says Howard Lutnick received.
Sources
5 independent publishers whose own reporting we read for this story.
- coindesk.comTop Democrat among Senate investigators probes ties between Cantor Fitzgerald, Tether
1 article · October 8, 2026
- cointelegraph.comCantor Fitzgerald faces Senate Democrat’s probe over Tether ties
1 article · October 8, 2026
- crypto.newsCantor Fitzgerald questioned by U.S. senator over Tether ties, Iran claims
2 articles · October 9, 2026
- cryptopolitan.comSenate Democrat probes Cantor Fitzgerald over Tether ties and $250M Lutnick windfall
1 article · October 8, 2026
- decrypt.coSenate Democrat Presses Cantor Fitzgerald on Tether Ties and Lutnick Family Profits
1 article · October 9, 2026