Profiting greatly from cryptocurrency trading, investment bank revenue exceeds $1 billion! The "Wall Street former employer" of the U.S. Secretary of Commerce achieves record performance, with his son serving as chairman
Investment bank Cantor Fitzgerald is expected to achieve record performance this year, with total revenue projected to exceed $2.5 billion, of which investment banking revenue will surpass $1 billion, primarily driven by its cryptocurrency-related initiatives. With Lutnick entering politics, his son Brandon Lutnick has taken over as chairman, steering this Wall Street firm that is aggressively expanding in the cryptocurrency space and has close ties with stablecoin giant Tether
At Cantor Fitzgerald, the "Wall Street former employer" of U.S. Secretary of Commerce Howard Lutnick, an early bet on cryptocurrency is yielding substantial returns, propelling the Wall Street firm toward its best performance year ever.
According to a report by The Wall Street Journal on November 26, citing informed sources, this privately held investment bank and financial services company is expected to achieve over $2.5 billion in revenue this year.
Of this, revenue from investment banking is expected to exceed $1 billion, nearly double the record of $650 million set in 2021. In the context of a general slowdown in trading activity, few companies on Wall Street have been able to surpass the performance levels of 2021.
This strong performance comes as the company completes a generational leadership transition. After Lutnick left in February this year to become U.S. Secretary of Commerce, his two sons have taken over senior positions in the company—Chairman and Executive Vice Chairman.
Cryptocurrency Business as a Key Engine
The core of Cantor Fitzgerald's performance growth lies in its deep involvement in the cryptocurrency sector. According to informed sources, the company has raised over $40 billion for the cryptocurrency sector this year and is expected to reach $50 billion by the end of the year.
The company's cryptocurrency business began in 2018, initially collaborating with Bitcoin miners, and later expanding to exchanges and custodians. According to previous reports, Cantor Fitzgerald not only holds a significant portion of the reserves of the world's largest stablecoin, Tether, but also possesses a convertible bond that grants it rights to approximately 5% of Tether's shares.
Additionally, the company has initiated a loan service for Bitcoin holders and supported a special purpose acquisition company (SPAC) in collaboration with Tether and SoftBank to launch a publicly traded Bitcoin vault company.
Lutnick Family's New Roles
As Lutnick enters politics, his eldest son, 27-year-old Brandon Lutnick, and 29-year-old younger son Kyle Lutnick, have taken on the roles of Chairman and Executive Vice Chairman of Cantor Fitzgerald, respectively. Lutnick himself has transferred his ownership in the company to a trust benefiting his children.
Although Lutnick is legally separated from the company's operations, his influence remains. His two sons are now representatives of the company's cryptocurrency business, frequently appearing at industry conferences and establishing connections with regulators and industry leaders.
Company executives have stated that the number of employees in its investment banking division has doubled over the past two years. Chairman Brandon Lutnick stated that while cryptocurrency is a recent business highlight, the company's vision is broader, aiming to "become the preferred bank in all areas."
