- Cantor Fitzgerald CEO Howard Lutnick vouched for Tether’s reserves backing USDT stablecoin, providing confidence in its legitimacy
- Lutnick said his firm manages some of Tether’s assets and has seen evidence they have the reserves claimed in attestations
- However, Tether still faces lingering questions without an official audit, despite moving reserves to safer assets like U.S. Treasuries
Cantor Fitzgerald CEO Howard Lutnick vouched for stablecoin issuer Tether‘s legitimacy on Tuesday, addressing one of the big questions surrounding Tether’s reserves backing its USDT stablecoin..
Lutnick Says Tether Has the Reserves It Claims
“They have it,” Lutnick said during an interview with Bloomberg TV. This is strong validation from an influential Wall Street figure, as Lutnick’s firm Cantor Fitzgerald is a prominent bond trading house.
Lutnick Manages Some of Tether’s Assets
“I manage many of their assets,” said Lutnick, who brought up crypto in an interview from Davos. “From what I’ve seen – and we did a lot of work – they have the money they say they have.”
Tether’s Attestations Show Growing Reserves
Lutnick seemed to refer to Tether’s latest attestation report, which showed growing reserves backing USDT. Tether has been increasing its holdings of safe assets like U.S. Treasuries, moving away from riskier commercial paper.
Lingering Questions Around Asset Quality
However, some still doubt the quality of Tether’s reserves. S&P Global gave Tether a poor score based on asset quality, regulation, governance and transparency. An official audit could provide more clarity.
Lutnick Previously Voiced Support for Tether
Lutnick has said positive things about Tether before. His firm Cantor Fitzgerald acts as a custodian for some of Tether’s Treasuries.
Lutnick Sees Crypto as Speculative in U.S.
When asked about bitcoin ETFs, Lutnick argued crypto is a speculative asset in the U.S., unlike countries suffering from currency devaluation. Stablecoins allow citizens of those countries to access the dollar.
Conclusion
The vocal support from major Wall Street executive Howard Lutnick provides confidence in the reserves backing leading stablecoin Tether. However, the company still faces lingering questions around an official audit. Lutnick remains bullish on Tether’s prospects despite viewing crypto like bitcoin as speculative.
