Cantor Fitzgerald CEO Howard Lutnick said in a recent interview that stablecoins issuer Tether does have the money it claims to possess amid the mass adoption of digital assets in countries suffering from hyperinflation.
The rise of Tether Holdings Limited to become the leading stablecoins issuer around the world has attracted mixed reactions in the past, despite its frequent updates on its cash reserves. However, Tether has been vouched for by a Wall Street veteran Howard Lutnick, the Chief Executive Officer at Cantor Fitzgerald, one of the 24 primary dealers that are authorized to trade US government securities with the Federal Reserve Bank of New York.
Notably, Lutnick said during a recent interview with Bloomberg that Tether has the money it claims it has. Interestingly, Lutnick brought up the crypto topic during the interview that was streamlined from Davos, where the World Economic Forum (WEF) kicked off earlier this week.
“I manage many of their assets. From what I’ve seen – and we did a lot of work – they have the money they say they have,” Lutnick said.
According to Lutnick, the use of stablecoins in countries suffering from hyperinflation like Venezuela, Argentina, and Turkey is crucial for their stability. Meanwhile, Lutnick indicated that the Americans are just ‘cocking around’ just like they buy Tesla stock.
“Holding your dollar in a token is amazing. That’s why Tether is doing really well,” Lutnick added.
Tether Success Story
The need for stablecoins arose over time as more volatile crypto assets emerged in the past few years. Tether (USDT) registered a significant entry into global markets, especially since it was the first stablecoin backed by the United States dollar. According to the recent assurance report on Tether compiled by BDO accounting firm, the company has a total of about $86.38 billion in consolidated assets against a total of around $83.17 billion in liabilities as of September 30, 2023. Notably, Tether has dramatically reduced its cash reserves and increased the Bitcoin and US T-bills holdings in a bid to ensure transparency and accountability.
“While naysayers have had their go at Tether over the years, it’s heartening to hear Cantor Fitzgerald CEO Howard Lutnick affirming the robustness of our reserves. It’s concrete evidence of Tether’s financial strength,” Tether CEO Paolo Ardoino responded.
Headwinds to Overcome
Amid the mainstream adoption of digital assets and web3 technology, Tether has been a punching bag for several global regulators including the United States among others. Notably, Tether has termed the UN’s assessment of its USDT as disappointing as it has done more to combat money laundering than most traditional financial institutions. Furthermore, the company noted that it has frozen over $330 million in recent months with help from Chainalysis. Nonetheless, the company is confident it will overcome the headwinds, thus its continued development progress to achieve the goal of stabilizing global financial markets.
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