Wall Street CEO Praises Tether
Howard Lutnick, CEO of Cantor Fitzgerald, has expressed his admiration for stablecoin issuer Tether. In an interview with CNBC, Lutnick revealed that he holds Tether’s treasuries and described himself as a “big fan” of the company. Despite the hesitation of other financial institutions to work with Tether, Cantor Fitzgerald has been managing its multi-billion dollar Treasury portfolio for several years. This partnership began in late 2021, according to anonymous sources cited by the Wall Street Journal. Cantor Fitzgerald is one of the few brokerage firms authorized to trade Treasury bonds.
Tether’s Transparency Issues
Tether, despite being the largest stablecoin by market cap, has faced criticism for its lack of transparency regarding its reserves. S&P Global’s stablecoin stability assessment ranked Tether second-lowest out of eight U.S. Dollar-pegged stablecoins. The assessment considered factors such as asset management, audits, risk appetite, redeemability in primary markets, payment rails in secondary markets, and maintaining its U.S. dollar peg.
Lutnick Sees Value in Tether and Bitcoin
Despite concerns about its long-term stability, Lutnick suggested that Tether could be beneficial for countries experiencing currency collapse. He also praised Bitcoin for its halving cycles and lack of centralization. According to Lutnick, Bitcoin is an asset that cannot be controlled or seized by anyone. In contrast, he believes that other cryptocurrencies are “make-believe.” Lutnick’s positive remarks about Tether and Bitcoin highlight his confidence in their value and potential.
Hot Take: Wall Street CEO Howard Lutnick Endorses Tether and Bitcoin
The endorsement of Tether and Bitcoin by Howard Lutnick, CEO of Cantor Fitzgerald, is a significant development for the crypto industry. Lutnick’s praise for Tether and his affirmation of holding its treasuries demonstrate his confidence in the stablecoin. Moreover, his recognition of Bitcoin’s unique qualities, such as its decentralization and resistance to control, further solidifies its position as a valuable asset. Lutnick’s endorsement may encourage other financial institutions to reconsider their stance on Tether and cryptocurrencies. This could potentially lead to increased adoption and acceptance of stablecoins and Bitcoin in traditional financial systems.
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