Cantor CEO Affirms Tether’s 100% Backed Assets
Howard Lutnick, CEO of Cantor Fitzgerald, has reiterated that Tether’s assets are fully backed. In an interview with Bloomberg, Lutnick confirmed that Cantor is a custodian for Tether’s US treasuries, which make up the majority of the reserves supporting the stablecoin giant’s popular USDT token.
Tether’s Dominance in the Crypto Ecosystem
Tether is the largest stablecoin in the crypto market with a market cap of $95 trillion, far surpassing its closest competitor, Circle USD (USDC), which has a market cap of $25.4 billion. It is also the third-largest cryptocurrency overall after Bitcoin and Ethereum. Tether dominates trading volume as well, with $40 billion in daily trades.
The Concerns Surrounding Tether
Despite its significance in providing liquidity to the crypto industry, there have been concerns about Tether’s lack of a full audit by a Big Four accounting firm. Unlike Circle, Tether only undergoes quarterly attestations from an external auditor, which offer a snapshot of its balance sheet on a specific date. However, Lutnick assured that Tether does have the assets it claims.
Lutnick’s View on Bitcoin and ETFs
While Lutnick expressed confidence in Tether, he was less enthusiastic about Bitcoin as an investment and the recent launch of Bitcoin ETF products. He sees cryptocurrencies as speculative for Americans but believes they are crucial payment infrastructure for underdeveloped countries without access to platforms like Paypal and Venmo.
Hot Take: Cantor CEO Supports Tether Amidst Audit Concerns
Howard Lutnick reaffirms his belief in Tether’s fully backed assets, dismissing doubts about the stablecoin giant. Despite Tether’s lack of a comprehensive audit, Lutnick asserts that Cantor Fitzgerald manages a significant portion of their assets and has witnessed their funds firsthand. With Tether’s dominance in the crypto ecosystem and its pivotal role in providing liquidity, investors and regulators continue to closely monitor the situation. However, Lutnick’s endorsement may help alleviate concerns surrounding Tether’s reserves, reinforcing its position as the leading stablecoin in the market.
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