Cantor Fitzgerald, the former Wall Street employer of US Commerce Secretary Howard Lutnick, is reaping massive rewards from early cryptocurrency bets, propelling the firm toward its most profitable year on record.
The privately-held investment bank and financial services company is projected to generate over $2.5 billion in revenue this year, with its investment banking division alone expected to surpass $1 billion—nearly double its 2021 record of $650 million. This exceptional performance stands out amid widespread slowdowns in trading activity across Wall Street, where few firms have matched their 2021 peaks.
The strong results coincide with a generational leadership transition. Following Lutnick's departure in February to assume his cabinet role, his two sons have taken top executive positions—as Chairman and Executive Vice Chairman.
**Crypto Business Fuels Growth** Cantor Fitzgerald's success stems largely from its deep involvement in cryptocurrency markets. The firm has reportedly raised over $40 billion for crypto ventures this year, with a target of $50 billion by year-end.
Launched in 2018, its crypto division initially partnered with Bitcoin miners before expanding to exchanges and custodial services. The company holds significant reserve assets backing Tether, the world's largest stablecoin, plus a convertible note entitling it to approximately 5% of Tether's equity.
Additional crypto initiatives include lending programs for Bitcoin holders and sponsoring a SPAC that partnered with Tether and SoftBank to launch a publicly-traded Bitcoin vault business.
**New Leadership Era** With Lutnick's move into politics, his sons—27-year-old Brandon Lutnick (now Chairman) and 29-year-old Kyle Lutnick (Executive Vice Chairman)—have assumed leadership roles. The Commerce Secretary has transferred his ownership stake to a trust benefiting his children.
Though legally separated from operations, Lutnick's influence persists. His sons now serve as the public faces of Cantor's crypto business, regularly appearing at industry events and engaging regulators and sector leaders.
Company executives note the investment banking team has doubled in size over two years. Chairman Brandon Lutnick emphasized that while crypto drives current growth, the firm aims to become "the bank of choice across all sectors."