- Lutnick emphasizes that traditional banks want to embrace Bitcoin as a reserve asset.
- Cantor Fitzgerald is entering the crypto market with a Bitcoin financing business.
Howard Lutnick, the CEO of Cantor Fitzgerald predicts that traditional finance (TradFi) companies want to transact in bitcoin as a new asset. But they are hesitating to take further steps because of all the existing requirements of U.S. regulators.
Lutnick on his official X post stated,
“Bitcoin has been an outsider to the TradFi community, and it’s only now dipping its toe into global finance. Cantor will help TradFi bring Bitcoin all the way in.”
He says that traditional finance “wants new assets” even though they are not accepted by many since Bitcoin. It is to be noted that, he was included in the “Presidential Transition” announced by Donald Trump last month. He was picked to chair Trump’s presidential team.
Lutnick pointed out that U.S. banks are reluctant to hold Bitcoin due to regulations requiring them to reserve an equivalent amount of their capital, which makes it impractical.
In addition, on 22nd August, Lutnik made a statement on X. He said that one of America’s biggest strengths is the country’s dollar, which is the superior currency circulating globally.
He stated,
“Tether has taken that to the next level by putting $USDT, the digital dollar, into the hands of people in emerging markets across the world. Since USDT is backed by tens of billions of US Treasuries.”
Lutnick also stated that the 300 million USDT wallet holders worldwide are contributing to financing the debt.
Cantor Fitzgerald to Open Bitcoin Financing
Also, at the BTC Conference, Howard Lutnick announced that Cantor Fitzgerald plans to launch a BTC financing business in June. He mentioned that the company is set to integrate Bitcoin into the global financial markets.
Even though involved with Tether, this new lending facility isn’t the company’s first venture into the crypto market. They plan to start with $2M in lending, with plans to increase by $2B in tranches as needed.
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