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Cantor Fitzgerald CEO praises Tether and Bitcoin

13 Dec 2023
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Howard Lutnick, the CEO of Wall Avenue agency Cantor Fitzgerald has praised stablecoin issuer Tether (USDT), describing himself as a “large fan” of the agency.

“I am an enormous fan of this stablecoin known as Tether…I maintain their treasuries. So I maintain their treasuries, they usually have a number of treasuries,” Lutnick said in a Dec. 11 interview with CNBC.

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

Notably, Cantor Fitzgerald has been serving to manage Tether’s multi-billion dollar Treasury portfolio for a number of years, regardless of many Wall Avenue companies shying away from crypto companies, notably within the wake of the Silicon Valley Bank crash.

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

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

Different giant monetary establishments have been reluctant to supply providers 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 relating to its reserves. It just lately carried out poorly in S&P International’s stablecoin stability assessment with the second-lowest rating out of eight U.S. Greenback-pegged stablecoins.

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

Regardless of the wariness round its long-term stability, Lutnick advised Tether may very well be helpful for currency-collapsing international locations like Argentina, whose new Bitcoin-friendly president Javier Milei has pledged to abolish the country’s central bank and transition to the U.S. greenback.

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Related concepts have been echoed by James Examine, lead on-chain analyst at blockchain analytics agency Glassnode, who referred to Tether as “the CBDC” that can be managed by the USA however is also more and more relied on by growing international locations seeking 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.

“These different cash, they’re not a factor […] They’re sort 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 the reason why he sees worth in holding it.

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

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