At the World Economic Forum in Davos, Cantor Fitzgerald CEO Howard Lutnick spoke positively about Tether and its stablecoin USDT: “They have the money.”
• Cantor Fitzgerald CEO Howard Lutnick spoke about Tether in an interview
• Cantor Fitzgerald manages Tether’s securities and US bonds portfolio
• Lutnick confident about Tether, its reserves and USDT
Howard Lutnick is considered a prominent and influential figure on Wall Street. He is chairman and CEO of Cantor Fitzgerald, one of the best-known bond trading houses. Lutnick recently spoke at the World Economic Forum in Davos, Switzerland, among other things, on crypto topics, especially Tether. Cantor Fitzgerald has been working as a Tether custodian since the end of 2021, managing its securities and US bond portfolios. Lutnick once again identified himself as a Tether fan in the interview.
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Tether balance sheet audited
Tether is the issuer of the stablecoin USDT, which tracks the value of the US dollar. USDT is considered the most widely used stablecoin in the world with a current market capitalization of $96 billion. The next largest competitor, USDC, only has a market value of around 26.1 billion US dollars (as of January 28, 2024).
According to the latest certification report, as of September 30, 2023, the company held assets of $86.4 billion in reserves, compared to liabilities of $83.2 billion. As Lutnick emphasized, Cantor Fitzgerald was able to review and confirm part of the balance sheet. Previously, a large portion of Tether’s reserves were tied up in commercial papers for years, according to Coindesk. However, there are no longer any commercial paper holdings. Meanwhile, the latest certification report shows that USDT is largely backed by US Treasuries – considered the safest assets in the world.
Lutnick optimistic: “You have the money”
In an interview with Bloomberg TV in Davos, Cantor Fitzgerald CEO also commented on the question of whether Tether actually has the money it claims to have. Lutnick’s response was clear: “You have it.” He also referred in the interview to conspiracies and rumors that Tether’s USDT stablecoin was backed by air: “There was always a lot of talk: ‘Do they have it or not?’ That’s why I’m here with you and say: We have seen it and they have it”. So Tether has the money to support USDT, emphasized Lutnick. “I manage many, many of their assets. From what we’ve seen – and we’ve done a lot of work – they actually have the money that they say they have.”
Industry skeptical, Tether CEO confident
“While critics have taken aim at Tether over the years, it is encouraging to hear Cantor Fitzgerald CEO Howard Lutnick affirm the robustness of our reserves,” Bloomberg quoted an email from Tether CEO Paolo Ardoino.
Meanwhile, the industry is not yet fully convinced about the quality of Tether’s assets. The rating agency S&P Global recently gave Tether one of the worst ratings in December 2023.
Editorial team finanzen.net