In a recent address, Howard Lutnick, CEO of Cantor Fitzgerald, provided an in-depth analysis of the current state of stablecoins, particularly focusing on USDt (Tether), and announced a major new venture in Bitcoin financing by Cantor Fitzgerald.

Lutnick emphasized the stability and reliability of USDt compared to USDC. He pointed out that USDt holds significant reserves in U.S. Treasuries, which are liquid and earn an interest rate of approximately 5.25%. 

In contrast, Circle had $3.3 billion of reserves in the uninsured Silicon Valley Bank, which offered only 0.25% interest before its collapse. This difference highlights the financial prudence of USDt's approach, ensuring redemptions are always backed by liquid assets.

Lutnick criticized Circle for its limited redemption capabilities, noting that Cantor Fitzgerald could only create $1 million of USDC per week and redeem $500,000, which he considered insufficient for a major trading firm. 

He encouraged the audience to investigate who could actually redeem large amounts of USDC, suggesting these limitations might undermine confidence in Circle's operations.

Lutnick detailed Tether's financial reserves, including $114 billion in assets, $11 billion in equity, over 80,000 Bitcoin, and 1.6 million ounces of gold, noting its diverse backing and collaboration with over 150 law enforcement agencies worldwide.

He also defended Tether against accusations linking it to terrorist organizations and other illicit activities, clarifying that Tether is not owned by Chinese individuals but by Giancarlo Devasini, an Italian. Lutnick stressed Tether's commitment to freezing assets involved in illegal activities.

Lutnick connected Tether's stability to broader economic benefits, especially for emerging markets. He noted that countries like Argentina, Venezuela, and Turkey prefer Tether over their local currencies due to its stability. 

This preference supports the U.S. Treasury by financing its debt through Tether's purchase of Treasury bills, thereby strengthening the U.S. economy.

Lutnick then announced Cantor Fitzgerald's new Bitcoin financing business, which will commence with $2 billion in lending, with plans to increase in $2 billion increments. 

Cantor Fitzgerald aims to build a robust ecosystem for Bitcoin, offering leverage and working with top custodians to support the digital asset community.

Lutnick expressed strong support for Bitcoin, likening it to gold and advocating for its unrestricted trade worldwide.

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