Stablecoins are ‘fundamental’ to the US economy – Cantor Fitzgerald CEO

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At the ChinalysisLink conference in New York, Cantor Fitzgerald CEO Howard Lutnick cited Tether's USDT and Circle's USDC as the main movers in the market, saying they “favor well-supported stablecoins.”

Lutnick said the use of StatCoin represents an important and fundamental tool for the U.S. economy, and that the use of the token for financial assets will likely increase over the next decade as the use of StatCoin increases globally.

“Dollar supremacy is fundamental to the United States of America. For us, it's important for our economy,” Lutnick said at the conference. “That's why I'm a fan of properly backed stablecoins. I'm a fan of Tether. I'm a club fan.

According to Lutnick, a stable currency represents a “disorderly risk to the world” that drives and creates demand for US Treasuries. Lutnick describes stablecoins as “evolutionary” in the context of monetary and economic applications.

“It drives demand for US Treasuries and is fundamental to the US economy,” Lutnick said.

The exec's claims are based on Cantor Fitzgerald's status as the custodian of the Tether USDT stablecoin, which itself is fundamental to most of the crypto market. USDT has a capitalization of $107 billion with an average daily volume of over $55 billion. Lutnick mentioned that Circle's USDC is the second largest stablecoin with a capitalization of $32 billion.

Despite these expressions of support for the stablecoin, Lutnik expressed his opposition to central bank digital currencies (CBDCs), citing concerns about how such financial products could be perceived in terms of geopolitical and economic boundaries. On this matter, Lutnick said:

“My concern is that central banks want to issue a central bank digital currency, does that make sense? But the problem is what China thinks. [They] He describes it as an American spy bag.

Looking ahead, Lutnick predicts an increase in tokenization of real-world assets (RWAs) such as bonds over the next 10 years.

“I think that when the right blockchains, which means blockchains that are fast and cheap, are available, I think that in the next 10 years, we will see the basic tokenization of financial assets,” said Lutnick.

In the year Tokenization, which is estimated to reach a $5 trillion market by 2030, is said to be one of the few viable uses for blockchain technology. In particular, financial firms such as BlackRock, Brevan Howard and Kohlberg Kravis Roberts have begun introducing their own initiative funds to capture this new market.

Lutnick, the CEO of a major financial institution, backed storkcoins as a fundamental driver of the US economy and predicted increased tokenization in the coming decade, adding weight to discussions about the future of digital assets and their integration. to traditional financial systems.

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