The CEO of Wall Street firm Cantor Fitzgerald, Howard Lutnick, has expressed admiration for stablecoin issuer Tether and described himself as a "big fan" of the company. Lutnick revealed that he holds Tether's treasuries and praised the firm for its substantial holdings, which currently exceed $90 billion. Cantor Fitzgerald has been overseeing Tether's multi-billion dollar Treasury portfolio for several years, a rare partnership between Wall Street and the crypto industry. The firm's involvement with Tether began in late 2021 and has continued despite other financial institutions being hesitant to provide services to Tether.
Tether's Partnership with Cantor Fitzgerald
Notably, Cantor Fitzgerald has been helping manage Tether’s multi-billion dollar Treasury portfolio for several years, despite many Wall Street firms shying away from crypto businesses, particularly in the wake of the Silicon Valley Bank crash. A Feb. 10 report from the Wall Street Journal said the partnership between Cantor and Tether began in late 2021, citing anonymous sources familiar with the matter.
Tether and Lack of Transparency
Despite being the largest stablecoin by market cap, Tether has faced criticism for its lack of transparency regarding its reserves. The company recently received a low ranking in S&P Global’s stablecoin stability assessment. The assessment considered factors such as asset management, audits, risk appetite, primary market redeemability, secondary market payment rails, and track record in maintaining its U.S. dollar peg.
Tether's Potential Benefits for Currency-Collapsing Countries
Lutnick suggested that Tether could be beneficial for countries facing currency collapse, such as Argentina. The country's new Bitcoin-friendly president, Javier Milei, has pledged to abolish the central bank and transition to the U.S. dollar. Lutnick believes that Tether's stability could offer a solution in such situations.
Lutnick's Praise for Bitcoin
While initially expressing his support for cryptocurrencies, Lutnick specifically praised Bitcoin for its halving cycles and lack of centralized control. He emphasized that Bitcoin is an asset that no one can seize, unlike Tether or Ethereum.
