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Monday, March 4, 2024

Cantor Fitzgerald CEO praises Tether and Bitcoin

Howard Lutnick, the CEO of Wall Avenue agency Cantor Fitzgerald, has praised USDT stablecoin issuer Tether, describing himself as a “massive fan” of the agency.

“I’m an enormous fan of this stablecoin known as Tether…I maintain their treasuries. So I preserve their treasuries, and so they have numerous treasuries,” Lutnick mentioned in a Dec. 11 interview with CNBC.

“They’re over $90 billion now, so I’m an enormous fan of Tether,” the Cantor Fitzgerald CEO mentioned.

Notably, Cantor Fitzgerald has been serving to handle Tether’s multibillion-dollar United States Treasury portfolio for a number of years, regardless of many Wall Avenue corporations shying away from crypto companies, notably within the wake of the Silicon Valley Financial institution crash.

A Feb. 10 report from The Wall Avenue Journal mentioned the partnership between Cantor and Tether started in late 2021, citing nameless sources accustomed to the matter.

Cantor Fitzgerald is one of some brokerage corporations that may commerce Treasury bonds, together with Charles Schwab, Constancy and Vanguard.

Different giant monetary establishments have been reluctant to offer companies to Tether. Wells Fargo stopped processing Tether’s wire transfers as a correspondent for its Taiwanese accounts in 2017.

Regardless of being the biggest stablecoin by market cap, Tether continues to be known as out for its lack of transparency concerning its reserves. It not too long ago carried out poorly in S&P International’s stablecoin stability evaluation, with the second-lowest rating out of eight U.S. dollar-pegged stablecoins.

The evaluation factored within the agency’s administration of property, audits, danger urge for food, major market redeemability, secondary market cost rails and observe file with sustaining its U.S. greenback peg.

Regardless of the wariness round its long-term stability, Lutnick advised Tether may gain advantage currency-collapsing international locations like Argentina, the place its new Bitcoin-friendly president, Javier Milei, has pledged to abolish the nation’s central financial institution and transition to the U.S. greenback.

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Related concepts have been echoed by James Test, lead on-chain analyst at blockchain analytics agency Glassnode, who referred to Tether as “the CBDC” that can be managed by america however may be more and more relied on by creating international locations trying to dollarize.

Lutnick likes Bitcoin too

The CEO initially claimed that he was a “fan of crypto” however then backtracked to supply extra particular reward for Bitcoin (BTC).

“These different cash, they’re not a factor […] They’re form of make-believe, Perhaps Ethereum is OK.”

Lutnick referred to Bitcoin’s halving cycles and its lack of a centralized entity as two of the primary explanation why he sees worth in holding it.

“The one asset individuals may have held the place nobody may take it? Bitcoin […] it’s uncontrollable,” Lutnick mentioned. “With Tether, you may name Tether, and so they’ll freeze it. With Ethereum, you may name Joe Lublin.”

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