Cantor Fitzgerald CEO Affirms Tether's Financial Stability

 Howard Lutnick, the CEO of Cantor Fitzgerald LP, has confirmed the financial stability of Tether Holdings. Cantor Fitzgerald, acting as the custodian for Tether, has verified that Tether's financial reports align with their declared assets.

 

As of June, Tether's assets were reported to be approximately $86 billion, a substantial amount intended to support the $83 billion in circulation of its USDT stablecoin. Cantor Fitzgerald plays a pivotal role in overseeing a significant portion of Tether's assets.

 This validation is crucial, particularly given the longstanding skepticism surrounding Tether's assertion of having a one-to-one dollar backing for its stablecoin. In a Bloomberg Television interview, Lutnick expressed confidence that Tether indeed possesses the claimed funds. He emphasized that his company conducted a thorough review of Tether's financial records, addressing lingering uncertainties about the actual financial holdings of Tether.

 Tether's USDT, the world's largest stablecoin, boasts a circulation of nearly $95 billion. In 2021, Tether settled a dispute with a U.S. regulatory authority, incurring over $40 million in fines for allegedly making misleading claims about its financial reserves. Subsequently, Tether began issuing attestations from an independent accounting firm to provide periodic updates on its reserves, though it fell short of a complete audit. 

A recent report by the United Nations Office on Drugs and Crime identified USDT as a preferred tool for money laundering and other illicit transactions. In response, Tether reiterated its commitment to preventing the misuse of cryptocurrencies in criminal activities, emphasizing the traceability of blockchain transactions as a feature that makes their tokens less likely to be used for illicit purposes.

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