Tether claims to hold around $95 billion in assets in its wallets. Although some doubt the veracity of this information, Howard Lutnik, CEO of one of the largest intermediaries for Wall Street traders, wants to be reassuring. He says all this money does exist.
Wall Street CEO defends Tether
Tether, whose stablecoin has seen recurring de-pegs over the past year, is facing several challenges currently. In addition to the UN accusation of facilitating money laundering, the USDT issuer also suffers from a lack of trust within the crypto community.
“ Howard Lutnick, CEO of Cantor Fitzgerald, vouched for $USDT issuer Tether on Tuesday, assuring users that it has the assets it claims to have. »
According to CoinDesk, Howard Lutnick vouched for the legitimacy of Tether during a recent interview with Bloomberg TV. When the reporter asked him if Tether has the money he claims to have, he came up with this answer:
“ I manage a lot of their assets. From what I’ve seen – and we’ve done a lot of work – they have the money they say they have. »
Coming from a Wall Street icon, this claim should dispel doubts about Tether’s reserves, although an official audit is expected. In the absence of a Proof-of-Reserve, trust rests on this influential statement, despite calls for increased transparency, like Binance.
It is pertinent to note that Lutnick, the owner of Cantor Fitzgerald, a renowned brokerage, is well positioned for direct trades with the FED, being one of 25 dealers for US Treasuries.
A long-awaited official audit
As proofs of reserve gain popularity following FTX’s November 2022 crash, users and investors are looking for safeguards to avoid similar setbacks. Binance responded with an assigned auditor, the Mazars group.
Tether, until now, has been content with attestation reports. The last one in September listed assets reserves of $86.4 billion and liabilities of $83.2 billion. The question of an official audit therefore remains crucial to establishing lasting trust.
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