Howard Lutnick, CEO of Cantor Fitzgerald LP, confirmed Tether Holdings’ financial health.
Lutnick, whose company acts as Tether’s custodian, ensured that Tether’s reported assets matched its financial statements. As of June, Tether reported a significant asset base of approximately $86 billion, a figure to support the $83 billion USDT stablecoin in circulation.
Cantor Fitzgerald plays a key role in managing many of these assets for Tether. This confirmation is pivotal given the long-standing skepticism of Tether’s claims that the dollar fully backs the stablecoin on a one-to-one basis.
In an interview with Bloomberg Television, Lutnick claimed that Tether has the money it says it has. He emphasized that he and his company have conducted an extensive review of Tether’s financials, dispelling ongoing doubts about whether Tether holds the funds it claims to have.
Tether’s USDT is the largest stablecoin with a circulating supply of nearly $95 billion. In 2021, Tether settled its troubles with U.S. regulators, which fined it more than $40 million over accusations of misleading statements about its financial reserves. Tether has since begun providing regular insight into its reserves by disclosing attestations from third-party accounting firms, although it does not perform full audits.
A recent report from the United Nations Office on Drugs and Crime identified USDT as a frequent tool of choice for money laundering and other illicit transactions. In response, Tether reaffirmed its commitment to curb the misuse of cryptocurrency for criminal activities. The company emphasized the transaction traceability of blockchain technology, arguing that this makes the tokens less likely to be selected for illicit purposes.
In recent months, Tether has been committed to helping U.S. regulators identify and seize cryptocurrency assets linked to criminal activity. Last November, the stablecoin issuer froze $225 million USDT linked to a trafficking ring under investigation by the Department of Justice (DOJ).