Howard Lutnick, CEO of financial asset management firm Cantor Fitzgerald, has highlighted regulatory challenges as a significant barrier to increasing Bitcoin adoption among traditional financial institutions.
In a recent post on X, Lutnick explained that U.S. banks are hesitant to hold Bitcoin due to regulations requiring them to set aside equivalent capital, making the practice impractical. He asserted,
“If the regulatory environment were more favourable, traditional financial firms would eagerly invest in Bitcoin.”
This is not the first time Lutnick has made such comments. In July, while speaking at the Bitcoin 2024 Conference in Nashville, Tennessee, Lutnick stressed that Bitcoin should be traded as universally as gold, without restrictions and pledged that Cantor Fitzgerald, as one of the largest asset management firms, would do everything in its power to make this a reality. He also revealed that Cantor Fitzgerald already holds a significant amount of Bitcoin.
Meanwhile, Cantor Fitzgerald recently announced its plans to launch a Bitcoin financing business. The firm, which manages U.S. Treasury trading for stablecoin issuer Tether, noted it aims to provide leverage to Bitcoin investors and has allocated $2 billion for the venture.
According to the announcement, the new venture will collaborate with selected Bitcoin custodians, though details about partners and launch dates remain undisclosed. The firm also noted that after exhausting the initial $2 billion allocation, it intends to expand with additional $2 billion increments to support the business.
More traditional financial institutions have been setting up crypto-focused ventures in the last 12 months. 21.co, the parent company of 21Shares, recently expanded the reach of its Wrapped Bitcoin product, 21BTC, by launching it on the Ethereum blockchain. Eliezer Ndinga, Head of Strategy and Business Development for Digital Assets at 21.co, emphasized the company’s commitment to rigorous asset management practices for wrapped crypto assets, stating, “Users want to maximize liquidity while ensuring their wrapped assets are secured to the highest standards.”
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