Cantor Fitzgerald CEO Howard Lutnick has just lent credibility to Tether Reserve by confirming the firm has the funds it purports to possess.
The validity of Tether reserves has been affirmed by Cantor Fitzgerald, an American financial services firm chaired by chief executive officer Howard Lutnick.
Legitimizing The Tether Reserve
Tether’s reserve has been the subject of considerable controversy over the years, with detractors asserting that the leading stablecoin issuer lacks sufficient capital to back its USDT token on the 1:1 basis it asserts.
In an interview with Bloomberg Television during the ongoing World Economic Forum (WEF) Conference in Davos, Howard Lutnick, this time, affirmed that Tether possesses the funds it claimed were supporting its reserve.
“I manage many, many of their assets,” Lutnick said in the interview. “From what we’ve seen, and we did a lot of work, they have the money.”
In the past, Tether encountered challenges with the office of the New York Attorney General (NYAG), as the firm was indicted for failing to maintain the declared reserve between June 1, 2017 and September 15, 2017. The company settled with NYAG in February 2021 after making a payment of $18.5 million.
The company has since been disclosing information regarding its reserve. The validation of the Tether Reserve by Howard Lutnick is supported by the fact that the organization serves as the custodian for most of the capital issued by the stablecoin issuer.
“I’ve seen a whole lot, and the firm has seen whole a lot, and they have the money,” he said. “And so there has always been a lot of talk, ‘Do they have it or not?’ So I’m here with you guys saying we’ve seen it, and they have it.”
Is Tether Presently in The Clear?
The most recent chapter in the history of opposition to USDT concerns a report by the United Nations Office on Drugs and Crime that emphasized USDT’s desirability as a sponsor of illicit activities.
Tether criticized the report as a rebuttal, noting that the UN offshoot opted to emphasize the negative rather than the positive aspects of the stablecoin’s utility.
At this time, the question is whether or not the support of the Cantor Fitzgerald CEO will lend the organization some legitimacy. The CEO of Tether, Paolo Ardoino, reaffirmed the authentication by stating that it serves as evidence of the cryptocurrency’s immense reserve.
At $95,081,208,794, Tether maintains its position as the largest stablecoin in the industry by market capitalization. The company stated in its most recent reserve attestation report that it had more than $86 million to preserve its capitalization of $83 million at the time.
