Cantor Fitzgerald's CEO Howard Lutnick Applauds Tether and Shows Interest in Bitcoin
Summary:
Cantor Fitzgerald's CEO, Howard Lutnick, has praised stablecoin issuer Tether (USDT) and expressed interest in Bitcoin. He noted being a 'great admirer' of Tether and acknowledged holding their treasury. Despite encountering reluctance from major financial institutions and criticism surrounding its transparency, Lutnick suggested that Tether could benefit countries battling currency collapse, like Argentina. He initially backed all cryptocurrencies but later focused his admiration on Bitcoin, citing its halving cycles and its uncontrollable nature as its key strengths.
Cantor Fitzgerald's CEO, Howard Lutnick has expressed his admiration for stablecoin issuer Tether (USDT) saying, he is a 'great admirer' for the company. "This stablecoin Tether has captured my interest... I keep their treasury. With a treasury size exceeding $90 billion, it is hard to overlook Tether," Lutnick conveyed in his conversation with CNBC on 11th Dec. Cantor Fitzgerald keeps Tether’s multi-billion-dollar Treasury portfolio, a long-standing collaboration even when cryptocurrencies tend to intimidate a number of Wall Street firms especially after the Silicon Valley Bank debacle. The relationship initiation between Cantor and Tether, as stated by the Wall Street Journal, dates back to the end of 2021 as per undisclosed sources.
Apart from Cantor Fitzgerald, other brokerage firms such as Charles Schwab, Fidelity, and Vanguard also deal with Treasury bonds. However, Tether faced reluctance from other prominent financial institutions for their services. For instance, in 2017, Wells Fargo halted processing Tether’s wire transfers after being a correspondent for its Taiwanese accounts.
Regardless of being the market cap's largest stablecoin, criticisms about Tether's transparency regarding its reserves have not been rare. In fact, its performance in the S&P Global’s stablecoin stability assessment was unimpressive. It received the penultimate ranking among eight U.S. Dollar-pegged stablecoins evaluated based on their assets' management, audits, risk appetite, and adherence to the U.S. dollar peg among other factors.
However, with criticisms aside, Lutnick suggested that Tether could be advantageous for countries like Argentina, struggling with currency collapse. Argentina's new Bitcoin-friendly President Javier Milei promises to discard the country’s central bank for transitioning to the U.S. dollar.
Although Lutnick initially stated being a 'crypto fan', he later shifted his commendation particularly towards Bitcoin. He raised doubts about the authenticity of other coins but thought Ethereum might be an exception. He elaborated his preference for Bitcoin, citing its halving cycles and absence of a centralized organization. He said, "Bitcoin can be held as an asset that no one can seize... it is beyond control.
Published At
12/13/2023 8:27:02 AM
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