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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 a giant fan of this stablecoin referred to as Tether…I maintain their treasuries. So I preserve their treasuries, and so they have a variety of treasuries,” Lutnick mentioned in a Dec. 11 interview with CNBC.
“They’re over $90 billion now, so I am a giant fan of Tether,” the Cantor Fitzgerald CEO mentioned.
Notably, Cantor Fitzgerald has been serving to handle Tether’s multi-billion greenback Treasury portfolio for a number of years, regardless of many Wall Avenue corporations shying away from crypto companies, significantly 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 aware of the matter.
Cantor Fitzgerald CEO Howard Lutnick on Tether on CNBC:
“I am a giant fan of this stablecoin referred to as Tether…I maintain their treasuries… and so they have a variety of treasuries. They’re over $90 billion now… I am a giant fan of Tether.”https://t.co/mKeDnSe3iM
— Gabor Gurbacs (@gaborgurbacs) December 12, 2023
Cantor Fitzgerald is one of some brokerage corporations that may commerce Treasury bonds, together with Charles Schwab, Constancy, and Vanguard.
Cantor CEO Howard Lutnick’s feedback on bitcoin and tether pic.twitter.com/E4j3uFdbAl
— nic carter (@nic__carter) December 13, 2023
Different massive monetary establishments have been reluctant to offer 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 referred to as out for its lack of transparency relating to its reserves. It lately carried out poorly in S&P International’s stablecoin stability evaluation with the second-lowest rating out of eight U.S. Greenback-pegged stablecoins.
The evaluation factored within the agency’s administration of property, audits, threat urge for food, major market redeemability, secondary market fee rails, and monitor file with sustaining its U.S. greenback peg.
Regardless of the wariness round its long-term stability, Lutnick instructed Tether could possibly be useful for currency-collapsing international locations like Argentina, whose new Bitcoin-friendly president Javier Milei has pledged to abolish the nation’s central financial institution and transition to the U.S. greenback.
Associated: Ex-Cantor execs launch crypto lending platform in expectation of Bitcoin ETFs
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 US however is also more and more relied on by creating international locations seeking to dollarize.
Tether is the CBDC.
Travis is useless on, if the USG can shut down Russia’s reserves…laborious to argue they’re incapable of closing down tether’s.
Most possible actuality is the USG simply discovered an infinite bid for treasuries, precisely after they want a bail out from an unsustainable… https://t.co/0i903ARV9x
— _Checkɱate ⚡☢️️ (@_Checkmatey_) December 13, 2023
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 type of make-believe, Possibly Ethereum is OK.”
Lutnick referred to Bitcoin’s halving cycles and its lack of a centralized entity as two of the principle explanation why he sees worth in holding it.
“The one asset folks may have held the place nobody may take it? Bitcoin […] it’s uncontrollable,” Lutnick mentioned. “With Tether, you possibly can name Tether and so they’ll freeze it. With Ethereum, you possibly can name Joe Lublin.”
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