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- Cantor Fitzgerald LP’s CEO is bullish on asset tokenization and stablecoins.
- Howard Lutnick believes that stablecoins can benefit the US economy.
- Lutnick also voiced concerns about central bank digital currencies (CBDCs).
During a recent Chainalysis conference in New York, Cantor Fitzgerald LP’s CEO, Howard Lutnick, shared his perspective on the role of stablecoins and the future of asset tokenization, emphasizing their potential benefits for the US economy.
Lutnick underscored the significance of dollar hegemony to the United States, stating,
Dollar hegemony is fundamental to the United States of America. It matters to us, to our economy.
He expressed support for properly backed stablecoins, specifically mentioning Tether (USDT) and Circle’s USD Coin (USDC), praising their contributions to the cryptocurrency market. It is important to note that Cantor Fitzgerald serves as a custodian for Tether Holdings Ltd., adding weight to Lutnick’s endorsement of stablecoins.
While acknowledging past speculation regarding Tether’s backing, Lutnick emphasized stablecoins’ role in mitigating non-systemic risk and driving demand for US Treasury bonds, which he deemed crucial for the US economy’s stability and growth.
In contrast to his support for stablecoins, Lutnick voiced reservations about central bank digital currencies (CBDCs), citing concerns about geopolitical implications, particularly concerning China’s potential perceptions of such initiatives.
Furthermore, Lutnick predicted a significant uptick in asset tokenization facilitated by advanced blockchains over the next decade. He believes that soon, real-world assets will also be traded on blockchains. Adding to that, Lutnick mentioned,
I think when proper blockchains, I mean blockchains that are fast and cheap, are available, I think you will see, over the next 10 years, fundamental tokenization of financial assets,
He highlighted the growing interest among financial giants, including BlackRock Inc., Brevan Howard, and KKR, in tokenizing various parts of funds. Citigroup’s estimation of the tokenization market reaching $5 trillion by 2030 further underscores the potential magnitude of this trend.
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