Cantor Fitzgerald CEO announces $2B Bitcoin financing business, defends Tether at Bitcoin 2024

Cantor Fitzgerald CEO and Chairman Howard Lutnick announced on stage at Bitcoin 2024 that the global services firm plans to establish a Bitcoin financing business with $2 billion of initial financing to provide leverage to investors who hold the digital asset. 

"We are going to welcome Bitcoin into the financing family of the global financial markets and Cantor Fitzgerald is going to be your sponsor," Lutnick announced. "We will build the best platform for financing Bitcoin, we will work with the best custodians, we are committed to your ecosystem of Bitcoin." 

Lutnick disclosed that he himself owns Bitcoin and that Cantor Fitzgerald owns "a shedload" of Bitcoin, being a fan of Bitcoin alongside "all of its partners." 

"My view is Bitcoin, like gold, should be free to trade everywhere in the world and as the largest wholesaler in the world we are going to do everything in our power to make it so," Lutnick said. "Bitcoin should trade the same as gold everywhere in the world without exception and without limitation." 

The operation will begin with $2 billion in initial financing, increasing in increments of $2 billion, according to Lutnick and the company's press release . 

Lutnick defends Tether, attacks USDC

Lutnick also defended Tether (USDT), for which Cantor Fitzgerald acts as a custodian. "We hold their money. USDT is fundamentally different than USDC because USDT holds treasuries and primary dealer Cantor Fitzgerald can liquidate those treasuries and meet your redemptions without fail," Lutnick said. 

"Think about it: [USDC issuer] Circle had $3.3 billion of your reserves uninsured in the Silicon Valley Bank when it went bust," Lutnick said. "Tether and USDT hold treasuries which earn, like, 5-and-a-quarter percent interest. Why would you put $3.3 billion in an uninsured bank account earning 25 basis points, a quarter of a percent, and be uninsured?" 

Lutnick also defended Tether against accusations that it's used by unsavory groups such as Hamas. "Let me make it crystal clear: we would never be associated with a company that has anything to do with Jihad, and it disgusts me...someone parked a truck in front of my office saying Tether is associated with Hamas. What a bunch of crap, seriously outrageous and knowingly false," said Lutnick, his voice rising to a shout, after reminding the audience that Cantor Fitzgerald lost hundreds of employees in the 9/11 terrorist attacks.