Tether's custodian, Cantor Fitzgerald CEO, advocates for stablecoins: Beneficial for the US economy

Bloomberg reported that Howard Lutnick, CEO of Cantor Fitzgerald, the custodian of stablecoin Tether, recently stated that stablecoins have increased the demand for U.S. Treasury bonds and are beneficial to the U.S. economy. He also expressed optimism about the development of Real World Assets (RWA) in the next 10 years.

Tether Custodian Claims Stablecoin Benefits US Economy

On Wednesday, Howard Lutnick stated at the Chainalysis conference that stablecoin issuers, including Tether, have been under regulatory pressure from governments worldwide. However, stablecoins backed by the US dollar are indeed beneficial to the US economy:

Stablecoins are crucial to the US economy, increasing demand for US Treasury bonds without posing a systemic risk to the world.

He also added, "The existence of USD stablecoins further solidifies the dominance of the US dollar globally."

Importance of Stablecoins

He emphasized that the circulation and use of stablecoins have provided more liquidity in USD, aiding governments and businesses to engage in more spending and investment activities, thus supporting economic growth.

Furthermore, stablecoins play a crucial role in the cryptocurrency market, widely used as base currencies for crypto trading and collateral for derivative trading, seen as a safe haven during the Fed's tightening cycle:

Therefore, proper support for stablecoins like Tether or Circle is crucial for the US economy.

DeFiLlama data shows that the market capitalization of these stablecoins is currently $107.2 billion and $31.56 billion, respectively.

Reportedly, Cantor Fitzgerald, the custodian of the largest stablecoin USDT globally, also endorsed Tether earlier this year, emphasizing that Tether indeed has excess reserves for its claimed USDT assets.

Tether's fourth-quarter excess reserves reached $5.4 billion, earning $6.2 billion for the full year of 2023.

Lutnick Opposes CBDCs

On the other hand, Lutnick expressed disagreement with Central Bank Digital Currencies (CBDCs), claiming that China may view digital USD as a tool for US monitoring and intelligence gathering, leading to measures to restrict its use, causing political and economic issues.

Former US President Trump seems to share a similar view, stating that CBDCs will strengthen the federal government's control over people's assets.

FED Digital Dollar Research: Will CBDC Impact the Dollar's Status? What Kind of CBDC Will Succeed?

Optimistic about RWA's Future Development

Lastly, regarding Real-World Asset (RWA) tokenization, Lutnick expressed optimism:

In the next 10 years, as long as technology advances rapidly and costs decrease, real-world assets, including bonds, may be tokenized and traded on the blockchain.

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