Unraveling Howard Lutnick's Insights on 'the Truth' About Tether

• Cantor Fitzgerald CEO Asserts Tether's Financial Stability
• Unspecified Amount of Tether's Funds Managed by Cantor
• Tether Accused of Being Unbacked
• Lutnick's Remarks and Cantor Fitzgerald's Reputation
• Lutnick's Motivation
• Tether's Growing Market Cap
• Need for Authentic Audit
• Call for Tether Truthers to Concede

Cantor Fitzgerald CEO Asserts Tether's Financial Stability

Howard Lutnick, chairman and CEO of Cantor Fitzgerald, has recently confirmed that Tether$1.000 -0.12%, the stablecoin issuer, possesses the funds they claim. Cantor has served as a Tether custodian since late 2021, allowing them to access portions of the stablecoin issuer's balance sheet.

Unspecified Amount of Tether's Funds Managed by Cantor

While the amount or percentage of Tether's funds managed by Cantor remains unclear, Lutnick maintains that he oversees a significant portion of their assets. His assertions come in the wake of long-standing speculations regarding the backing of Tether's USDT stablecoin.

Tether Accused of Being Unbacked

Claims have been made suggesting that the USDT stablecoin is unbacked. However, Lutnick disputes these allegations, stating from his own observations that Tether does indeed hold the necessary funds.

Lutnick's Remarks and Cantor Fitzgerald's Reputation

The comments by Lutnick, who is possibly the only individual outside of the crypto world with a reputation at stake willing to vouch for the offshore stablecoin, are notable. His assertions follow a recent UN report that identified USDT as the preferred medium for money laundering in Southeast Asia. Tether, however, rejected these allegations, citing the traceability of Tether tokens and their track record of cooperation with law enforcement.

Lutnick's Motivation

Lutnck, the majority owner of Cantor, has a financial incentive to dispel rumors surrounding Tether, a client of his firm. Tether's reserves, as reported by an unnamed source, constitute a vast majority.

Tether's Growing Market Cap

With a market cap exceeding $90 billion, Tether's growth outpaces that of its rival stablecoins. If a dollar or its equivalent is held in reserve for the circulating $99.5 billion+ worth USDT, this indicates a significant amount of assets that Cantor could potentially use to generate revenue.

Need for Authentic Audit

An actual audit, as opposed to the quarterly attestations provided by Tether, could affirm the robustness of Tether's reserves. Even though Tether has promised to provide an actual audit for years, auditing firms have historically been hesitant to engage with the crypto industry or take the risk of auditing a company like Tether. Consequently, until an actual audit is conducted, the debate will continue.

Call for Tether Truthers to Concede

For years, skeptics have freely speculated about Tether, often drawing arbitrary connections and posing baseless questions. Regardless of past controversies involving Tether, including misrepresentation of reserves and questionable dealings with sister company Bitfinix, it is plausible for a lucrative company such as Tether to reform its operations. With each day USDT continues to trade and expand onto new blockchains, and with each new institutional backer like Cantor it secures, there is an additional reason for its potential growth and maturation.

Edited by Jonathan Stoker