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Cantor Fitzgerald CEO Howard Lutnick backs Tether; asserts it possesses the financial backing it claims

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Cantor Fitzgerald CEO Howard Lutnick backs Tether reserves; asserts it possesses the financial backing it claimsCantor Fitzgerald CEO Howard Lutnick backs Tether reserves; asserts it possesses the financial backing it claims

In this post:

  • Howard Lutnick, CEO of Cantor Fitzgerald, validates Tether’s financial backing and the legitimacy of the USDT stablecoin.
  • Lutnick predicts stability and growth for Bitcoin, particularly highlighting its significance in countries with economic challenges.
  • He emphasizes the differing roles of cryptocurrencies globally, seeing them as speculative assets in the U.S. but as crucial financial tools in unstable economies.

During a recent interview with Bloomberg TV, Howard Lutnick, CEO of Cantor Fitzgerald, a renowned bond trading house and primary dealer for U.S. Treasurys, expressed confidence in the legitimacy of Tether, the issuer of the USDT stablecoin. Lutnick, whose company manages a significant portion of Tether’s U.S. Treasury securities, asserted that Tether possesses the financial backing it claims. This statement comes as a strong endorsement for Tether, especially considering Cantor Fitzgerald’s prominence in the financial sector.

Lutnick referenced Tether’s latest attestation report, which indicated the company held $86.4 billion in assets against $83.2 billion in liabilities as of September 30, 2023. Notably, a large portion of Tether’s reserves has transitioned from commercial paper to U.S. Treasuries, deemed among the safest assets globally. Despite this, concerns about the quality of Tether’s assets persist, as highlighted by a recent low rating from S&P Global. The industry eagerly anticipates a formal audit for a clearer understanding of Tether’s financial state.

Bitcoin’s role and future in the global market

Lutnick also discussed Bitcoin and its role in the global market. He predicted stability for Bitcoin, with potential growth expected around the next halving event. However, he expressed a view that spot Bitcoin ETFs in the U.S. serve primarily as a means for Americans to invest in Bitcoin, noting that cryptocurrencies like Bitcoin hold different significance in countries like Argentina, Venezuela, and Turkey. In these regions, crypto assets and stablecoins play a crucial role in preserving wealth and accessing stable currencies like the U.S. dollar.

The global impact of cryptocurrencies and stablecoins

Lutnick emphasized that while cryptocurrencies are often seen as speculative assets in the United States, their importance in countries with unstable economies cannot be overstated. For people in countries experiencing economic turmoil or hyperinflation, cryptocurrencies, and stablecoins offer a way to maintain financial stability and access to international currencies. This perspective sheds light on the diverse applications and significance of cryptocurrencies beyond mere investment vehicles in the American market.

 Howard Lutnick’s insights provide a valuable perspective on the current state and future potential of cryptocurrencies and stablecoins. His confidence in Tether’s financial backing, alongside his views on Bitcoin and the broader cryptocurrency market, underscores the growing integration of these digital assets within the global financial landscape. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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