Cantor Fitzgerald, a prominent U.S. financial services firm, has unveiled a new Bitcoin financing business, backed by an initial $2 billion in funding. The announcement was made by CEO and Chairman Howard Lutnick on July 27 at the Bitcoin 2024 conference in Nashville, Tennessee.
With $13.2 billion in assets under management, Cantor Fitzgerald is significantly bolstering its involvement in the cryptocurrency sector. The firm’s press release reveals that it will start with $2 billion in financing, with plans for future expansion. This initiative aims to offer leverage to investors holding Bitcoin.
Lutnick expressed enthusiasm about the venture, stating, “We are excited to help unlock Bitcoin’s full potential and continue bridging the gap between traditional finance and digital assets.”
The company plans to partner with select Bitcoin custodians, though specific names have yet to be disclosed.
During his speech at the conference, Lutnick defended Tether, a major stablecoin issuer, describing it as “incredibly well-capitalized” and essential for liquidity in the cryptocurrency market. He also drew a comparison between Bitcoin and gold, advocating for unrestricted global trading of the cryptocurrency.
Cantor Fitzgerald, one of 24 primary dealers authorized by the Federal Reserve Bank of New York, is poised to leverage the recent introduction of spot Bitcoin ETFs in the U.S., which has already enhanced institutional investment in the sector.
In related developments at Bitcoin 2024, former President Donald Trump urged attendees to retain their Bitcoin holdings and promised that his potential re-election would see the establishment of a national Bitcoin reserve. Trump also proposed forming a crypto advisory council to craft favorable regulations and vowed to dismiss SEC Chair Gary Gensler, positioning himself as a supporter of the cryptocurrency industry.
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