Cantor Fitzgerald Chief Assures Tether Reserves as Fully Backed by Deposits
Cantor Fitzgerald chief executive Howard Lutnick indicated that Tether possesses the money it claims as USDT reserves. The executive disclosed this during an interview with Bloomberg while attending the World Economic Forum (WEF) annual meeting in Davos, Switzerland.
Lutnick, the chair and majority shareholder at the financial services company Cantor Fitzgerald assured that Tether has the billions backing the USDT. The pronouncement by the firm’s chair arises from a detailed understanding of USDT reserves being the stablecoin issuer custodian since 2021.
Cantor Fitzgerald Affirms USDT Reserves
Lutnick admitted examining the balance sheet for the stablecoin issuer, being its custodian since late 2021. In the Tuesday, January 16 interview with Bloomberg Television, he acknowledged that Cantor Fitzgerald manages multiple of Tether’s assets.
Lutnick revealed that their assessment of the firm shows that Tether has the USDT reserves. He reflected on the attestation publication by Tether in October, indicating that by September, Tether had $86 billion in assets backing $83 billion of USDT stablecoin.
The Cantor Fitzgerald chief admitted witnessing multiple developments at a time when Tether has seen a load of experiences. Nonetheless, Lutnick indicates that Tether has the money.
Lutnick weighed on the allegations that Tether does not have adequate reserves for the USDT. He dismissed such claims, acknowledging that Cantor Fitzgerald had seen the reserves.
Tether’s chief executive affirmed that Cantor Fitzgerald has been the firm’s custodian since late 2021. He aimed a jibe at critics of Tether, labeling them as naysayers who questioned the USDT reserves.
Ardoino hails the heartening comment by Lutnick as illustrative of Tether’s robust reserves. The pronouncement by the Cantor Fitzgerald head is beyond a mere affirmation. Cantor custodies most of Tether’s reserves, hence the basis of Lutnick’s comments demonstrating concrete evidence of the firm’s financial strength.
Tether has often been a target of prolonged speculation and allegations of issuing unbacked USDT stablecoins. Many critics doubt the presence of one-to-one reserves for the USDT. Tether has consistently dismissed those allegations.
Tether entered a $18.5 million settlement with the New York Attorney General’s (NYAG) office in 2021. The penalty arose from the failure by Tether to back its USDT stablecoins in matching reserves in the June-September 2017 period.
Tether and parent company Bitfinex confirmed the agreement with the NYAG mandating the firm to submit quarterly reports regularly for two years.
Tether seeks to move beyond quarterly reporting by offering a real-time reporting system for its reserves scheduled for 2024.
Lutnick Exhibits Preference for Tether
Lutnick portrays admiration for Tether, illustrated in its praise in a recent interview. The Cantor’s head described USDT stablecoin as an alternative to holding onto the dollar during an inflationary period.
Lutnick reiterated the suitability of Tether’s USDT stablecoin in countries battling high inflation, including Turkey, Venezuela, and Argentina.
Lutnick echoed the December praise for Tether, confirming he is a big fan. He added that the company held Tether’s treasuries, which he described as numerous.
Lutnick’s clean bill of health for Tether coincides with when the USDT stablecoin garnered popularity among crypto traders. According to Coin Gecko data, the world’s largest stablecoin has an estimated supply of $99.5 billion coins.
Lutnick Weighs on Bitcoin Viability
The Cantor Fitzgerald boss reflected on Bitcoin during the Tuesday interview at Bloomberg TV. He indicated that the world’s largest crypto by market capitalization will rally following the Bitcoin halving, which is projected to begin by late April 2024.
The reduced reward for a completed Bitcoin block would keep the token supply in check, with miners set to earn 3.125 from the current 6.25 bitcoins.
Lutnick downplayed the spot Bitcoin ETF approval as unlikely to fuel the Bitcoin price rally. The Bitcoin ETFs offer an alternative that Americans can leverage when purchasing Bitcoin.
Lutnick calmed the prediction that stablecoins and Bitcoins would realize a massive use case. He considers that Americans still prefer acquiring Tesla stocks and that the crypto is not an American thing.
