Howard Rutnick, CEO and Chairman of Cantor Fitzgerald, announced at Bitcoin 2024 that the global services firm plans to launch a Bitcoin finance business with an initial funding of $2 billion to provide leverage to investors holding the digital asset.
“We are welcoming Bitcoin into the global financial markets funding family, and Cantor Fitzgerald will be your sponsor,” Lutnick announced. “We are building the best platform for Bitcoin funding, partnering with the best custodians, and committing to your Bitcoin ecosystem.”
Rootnick said he owns Bitcoin and that Cantor Fitzgerald owns a “huge” amount of Bitcoin and that he and “all of our partners” are fans of Bitcoin.
“I believe that bitcoin should be traded freely, like gold, anywhere in the world, and as the world’s largest wholesaler, we will do everything we can to make that happen,” Rutnick said. “Bitcoin should be traded like gold, anywhere in the world, without exceptions, without restrictions.”
According to a press release from Rootnick and the company, the venture will start with an initial capital of $2 billion and grow in $2 billion increments.
Rootnick, Tether Defender, USDC Attack
Rootnick also advocated for Tether (USDT), which has Cantor Fitzgerald as its custodian. “We store their money. USDT is fundamentally different from USDC because USDT stores government bonds and Cantor Fitzgerald, as the primary dealer, can liquidate those bonds and meet redemptions without fail,” Rootnick said.
“Think about it. (USDC issuer) Circle had $3.3 billion in uninsured reserves at Silicon Valley Bank when they went bankrupt,” Lutnick said. “Tether and USDT hold Treasuries that pay 5 and a quarter percent. Why would you have $3.3 billion in an uninsured bank account that pays 25 basis points, a quarter percent, and then it becomes uninsured?”
Lutnick also defended Tether against accusations that it is used by unsavory groups like Hamas. “Let me be clear: We will never be associated with a company that has ties to jihad. It’s disgusting… Someone parked a truck in front of my office and said Tether is associated with Hamas. It’s absolutely ridiculous. It’s absolutely outrageous and deliberately false,” Lutnick said, raising his voice after reminding the audience that Cantor Fitzgerald lost hundreds of employees in the 9/11 terrorist attacks.
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