Financial company Cantor Fitzgerald has agreed to acquire a 5% stake in stablecoin issuer Tether for $600 million, according to a report from WSJ, citing its own sources.

The CEO and major shareholder of Cantor Fitzgerald, Howard Lutnick, is the co-chairman of U.S. President-elect Donald Trump’s transition team. On November 19, Trump nominated Lutnick for the position of Secretary of Commerce in his upcoming administration.

According to the publication, Tether’s leadership views Lutnick as a key ally in countering regulatory pressure on the stablecoin sector.

Tether’s major shareholder, Giancarlo Devasini, reportedly stated earlier this year:

“Lutnick will use his political influence to try to neutralize the threats Tether faces.”

A source close to WSJ emphasized that the relationship between the two companies is strictly professional and based on reserve management. Claims that Lutnick’s role in the transition team allows him to influence regulators were described as “laughable.”

Cantor Fitzgerald manages a large portion of Tether’s assets, valued at $133 billion, earning “tens of millions of dollars” annually in fees.

For the third quarter, the stablecoin issuer reported a net profit of $7.7 billion for the year.

It’s worth recalling that in October, WSJ reported on a U.S. investigation into potential violations of Tether’s sanctions regime and anti-money laundering rules. CEO Paolo Ardoino denied the claims.