Wall Street CEO Backs Tether's Controversial Stablecoin Assets: 'They Have the Money'

• Cantor Fitzgerald CEO Confirms Tether's Financial Standing
• Cantor Fitzgerald and Its Ties with Tether
• Tether's Financial Report
• Continuing Questions Around Tether's Assets
• Lutnick's Support for Tether

Cantor Fitzgerald CEO Confirms Tether's Financial Standing

The CEO of Cantor Fitzgerald, Howard Lutnick, recently asserted the legitimacy of Tether$1.000 -0.12%, the issuer of the renowned stablecoin, USDT. The question of Tether's financial claims has been a contentious issue in the crypto sphere for years. With its market capitalization exceeding $95 billion, USDT is the world's most prevalent stablecoin. They have it, said Lutnick in an interview with Bloomberg TV, giving a noteworthy validation to Tether's fiscal credibility.

Cantor Fitzgerald and Its Ties with Tether

Cantor Fitzgerald, operated by Lutnick, is one of the leading bond trading firms on Wall Street. It is also one of 25 primary brokers for U.S. Treasurys, which allows for direct transactions with the Federal Reserve. Lutnick revealed that he oversees many of Tether's assets during a live interview from Davos, Switzerland. He went on to affirm, From what I've seen - and we did a lot of work - they have the money they say they have.

Tether's Financial Report

Lutnick's statement appears to correspond with Tether's latest attestation report, which indicated that as of September 30, it held $86.4 billion in reserves against $83.2 billion in liabilities. Tether's reserves were largely tied up in commercial paper for a long time, which raised concerns among certain observers. However, the recent report indicates that USDT is primarily backed by U.S. Treasuries, generally regarded as one of the safest assets globally, with no holdings in commercial paper.

Continuing Questions Around Tether's Assets

Lutnick's Support for Tether

Lutnick has expressed his support for Tether in the past. His firm, Cantor Fitzgerald, holds custody for the stablecoin issuer's Treasuries. In regard to the growing trend of bitcoin ETFs, Lutnick questioned the real value of bitcoin and stablecoins for Americans. He suggested that cryptocurrencies are more speculative assets in the U.S, whereas in countries like Argentina, Venezuela, and Turkey, people hold crypto for more significant reasons. He noted, This is a speculative asset for us but for countries like Argentina, Venezuela, Turkey, these crypto assets matter, stablecoins matter in those countries, he said. It's a way to hold on to the dollar.

Edited by Jonathan Stoker