Tether 'Has The Money,' Says Billionaire CEO: 'Bitcoin Will Grow'

Cantor Fitzgerald CEO Howard Lutnick believes Tether USDT/USD, the biggest stablecoin by market capitalization, has substantial assets and liabilities.

What Happened: "There's a company that I like called Tether," he told Bloomberg. "And the group I want to say here with you, from what we've seen and we did a lot of work, they have the money."

His comments come on the heels of a United Nations report that scrutinizes USDT as a favored payment method for criminal activities.

Lutnik also compared the trajectory of Bitcoin BTC/USD to the early days of gold ETFs. He said while the apex crypto has experienced significant hype and a sharp rise in value, it is likely to stabilize in the future.

He anticipates that Bitcoin will maintain a steady presence in the market.

"Bitcoin ran up. It's kind of going to stay steady," he said. "But when the halving comes, it's going to start to rally and grow. So Bitcoin I think will grow." 

Read Also: Morgan Stanley Crypto Expert Outlines How Bitcoin, CBDCs Threaten US Dollar Supremacy

Why It Matters: Lutnick says stablecoins have potential, particularly in countries experiencing economic instability.

In nations like Argentina, Venezuela, and Turkey, where local currencies are subject to significant devaluation, stablecoins offer a reliable alternative.

"Stablecoins matter in those countries," he said.

Lutnick highlighted the practicality of holding stablecoins in these regions, noting that for people in countries with rapidly depreciating currencies, holding their wealth in a stablecoin pegged to the dollar is a sensible choice.

"Imagine you're in Turkey, you know, want to hold it for lira? I mean, come on, it's going to go down 60% this year. You want to hold the dollar and holding it in a token, right. Holding your dollar in the token is amazing," he explained.

Regarding the potential impact of Bitcoin ETFs, Lutnick seemed skeptical about their ability to alter the landscape for American investors.

He questioned the necessity of such products for Americans, suggesting that their interest in cryptocurrencies like Bitcoin is more speculative compared to the practical use of stablecoins in economically volatile countries.

Now Read: Celestia's TIA Token Sets Stage For Potential Gold Rush, Says Crypto Expert