Kevin Warsh, President Donald Trump’s nominee to chair the Federal Reserve, helped shape Anchorage Digital, a key player in Tether’s efforts to gain a regulated foothold in U.S. markets.
Kevin Warsh has been an advisor to Anchorage since the very beginning and I couldn’t be more excited that he’s been selected as the next chair of Federal Reserve.
If Warsh was still an advisor to Anchorage, it would establish a link between him and Commerce Secretary Howard Lutnick. Prior to his own nomination, Lutnick led Cantor Fitzgerald, the investment bank that custodies a portion of Tether’s reserves for USDT.
“We are grateful to Kevin Warsh for providing counsel to Anchorage Digital for many years, and wish him the best throughout the confirmation processes as he is a phenomenal candidate,” an Anchorage spokesperson told Decrypt.
Cantor’s role in safeguarding assets that back the $185 billion stablecoin has been known for years, but Tether signaled last week that the Wall Street giant would also serve as USAT’s designated reserve custodian, as well as its preferred primary dealer.
Tether’s flagship stablecoin is partially backed by assets including Bitcoin and gold, which doesn’t align with U.S. requirements for stablecoin issuers under the new regulation. However, the firm based in El Salvador has said that USAT will abide by the framework, using a bank as infrastructure that Trump’s nominee for Fed chair has had a business relationship with.
Decrypt has reached out to Tether for comment.
Anchorage Digital was established in 2017. Years later, it became the first crypto bank to receive a federal charter in the U.S., allowing it to serve as a regulated bridge between traditional banking systems and digital assets.
Last May, Cantor Fitzgerald said that Lutnick had finalized a major divestiture of his interests in Cantor Fitzgerald and two subsidiaries to comply with government ethics agreements. His ownership interests in Cantor were transferred to trusts for the benefit of his children.
Cantor declined to comment when reached by Decrypt.
