Cantor Fitzgerald will launch a fiat lending business with bitcoin collateral. This was announced by the CEO of the financial group Howard Lutnik, writes The Block.
Initially, the limit will be $2 billion. In the future, it will be increased by a similar amount. The company's customers will actually be able to get leverage on their coins.
"We will accept bitcoin into the family of global financial markets. [...] Cantor Fitzgerald will create the best platform for financing the first cryptocurrency [...] with the best custodians. The asset should be traded in the same way as gold, all over the world without exceptions and restrictions," commented the top manager.
Lutnik said that he owns bitcoin, as well as the organization he heads, because he is a fan of it along with "all his partners."
The CEO of the financial group defended Tether (USDT). Cantor Fitzgerald stores the security of her stablecoin.
"USDT is fundamentally different from USDC. In the first case, reserves form treasury obligations, and the primary dealer Cantor Fitzgerald can liquidate them and meet your requirements without problems," Lutnik explained.
The top manager recalled that in 2023, Circle, the issuer of the USDC, placed part of the collateral in the bankrupt Silicon Valley Bank.
"Tether holds treasury bonds that earn about 5.25%. Why would you send $3.3 billion to an uninsured bank account at 25 basis points?" he said.
Lutnik also supported Tether in light of allegations of the use of USDT by terrorist groups.
"We will never be associated with a firm that is related to jihad [...] What outrageous and deliberately false nonsense?" he pointed out.
By the end of the first quarter of 2024, 13 of the 25 largest U.S. hedge funds owned bitcoin-based products, according to River.
Recall that in May, the head of the digital assets department at BlackRock, Robert Mitchnik, announced expectations of a new wave of inflows of funds into spot BTC-ETFs due to the participation of institutions.
In April, Bernstein analysts presented a similar forecast.
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