Over the years, Tether, the largest dollar-based stablecoin in the world, has been peppered with allegations of fraud and claims that the company did not have 1 to 1 reserves for USDT. In an interview with Bloomberg, held at Davos, Cantor Fitzgerald CEO Howard Lutnick put those claims to rest. He said they manage many of Tether’s assets. He said that currently, Tether has $86 billion in assets and $83 billion in liabilities.
A quote from the interview by Lutnick on the reserves:
“They have the money they say they have, I’ve seen a whole lot and the firm has seen whole a lot and they have the money. And so there has always been a lot of talk ‘Do they have it or not?’ and I’m here with you guys and I’m telling you we’ve seen it and they have it.”
Cantor is a highly respected financial services firm. Cantor has trading desks in all of the world’s major financial centers and offices in over 30 international locations. The company employs approximately 12,000 people. Cantor also works in the institutional equity, fixed-income sales, and trading space. The company serves the middle market with investment banking services. It is also one of a handful of firms that are prime brokers for US government securities.
So, a statement by Cantor is pretty much the gold standard of truth. This should put all the questions about Tether and reserves to rest.
On another note, Lutnick threw water on the pundits predicting rate cuts in the near term, stating he expects the “higher for longer” theme to continue.
