- Cantor Fitzgerald CEO Howard Lutnick expressed his support for tokenization of financial assets and cryptocurrency stablecoins.
“Dollar hegemony is essential to the US Constitution.” At the Chainalysis conference in New York, Lutnick stated, “It matters to us, to our economy,” reiterating his support for stablecoins with a strong user base, such as Tether and Circle.
The biggest stablecoin issuer, Tether Holdings, has been under investigation for its backing claims. Cantor Fitzgerald serves as one of its custodians.
According to Lutnick, stablecoins are a non-systemic risk and increase demand for US Treasury bonds, which benefits the US economy.
Lutnick projected a significant move towards tokenizing real-world assets (RWA), including bonds, enabled by blockchain technology improvements, emphasizing the benefits of blockchain technology in banking.
Lutnick said, “I think you will see fundamental tokenization of financial assets over the next 10 years when proper blockchains are fast and cheaply available.”
Major financial firms such as KKR, Brevan Howard, and BlackRock are investigating the use of tokenization technology for fund components, indicating that the trend towards tokenization is in line with industry trends.
The potential magnitude of this change is demonstrated by Citigroup’s prediction that the tokenization market might reach $5 trillion by 2030.
But Lutnick expressed worries about central bank digital currency (CBDCs), saying that other countries—especially China—may see them as the American spy wallet and use them as surveillance instruments.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
