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Howard Lutnick, the Chairman and CEO of American Financial Services firm, Cantor Fitzgerald has attested to the validity of Tether reserves.
Lending Legitimacy to Tether Reserve
Over the years, there has been a lot of controversy surrounding Tether’s reserve as critics claim the top stablecoin issuer does not have enough capital to back its USDT token on the 1:1 basis it claims.
This time around, Howard Lutnick, speaking in an interview with Bloomberg Television at the ongoing World Economic Forum (WEF) Conference in Davos confirmed that Tether has the funds it said is backing 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.”
Tether has had issues with the office of the New York Attorney General (NYAG) in the past as the firm was indicted for not having the reserve it proclaimed from at least June 1, 2017, until September 15, 2017. In February 2021, the company settled with NYAG after paying the sum of $18.5 million.
Since then, the company has been publishing details of its reserve. The legitimacy of Howard Lutnick in validating the Tether Reserve comes as the company manages the bulk of the stablecoin issuer’s capital as its custodian.
“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 in the Clear Now?
The backlash on USDT has always taken new turns over time and the latest features the report from the United Nations Office on Drugs and Crime that dwelt the attractiveness of USDT in sponsoring illegal activities.
In response, Tether slammed the report as it noted that the UN offshoot chose not to focus on the good aspects of the stablecoin’s utility to focus on the negative.
The current hope right now is whether or not the backing from the Cantor Fitzgerald boss will add a level of legitimacy to the company. Tether’s CEO, Paolo Ardoino has echoed the validation with the note that the affirmation is a testament to its deep reserve.
Tether remains the biggest stablecoin in the industry as it boasts a market capitalization of $95,081,208,794. In the last Tether reserve attestation report, the company said it had over $86 million preserving its $83 million capitalization at the time.
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