Wall Street CEO says “I have the money” on Tether reserve assets controversy | CoinDesk JAPAN

Howard Lutnick, CEO of Wall Street financial services firm Cantor Fitzgerald, said on the 16th that Tether, the stablecoin issuer behind Tether (USDT), is He assured Tether’s legitimacy by noting whether it had the funds. This has been one of the big questions in the crypto industry for years as Tether has grown significantly.

“They have it,” Lutnick said in an interview with Bloomberg TV.

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This is a powerful statement for Tether, coming from a prominent and influential Wall Street figure. Cantor Fitzgerald, led by CEO Lutnick, is one of Wall Street’s most famous bond trading firms. It is one of 25 primary dealers in U.S. Treasury securities and can trade directly with the Federal Reserve System.

Tether has long been known for backing Tether, the world’s most widely used stablecoin with a market capitalization of over $95 billion (approximately 13,775 billion yen, equivalent to 145 yen to the dollar). It has been attracting attention.

“I control a lot of their assets,” Lutnick said, adding, “From what I’ve seen, and we’ve done a lot of work, they have no money they claim to have. “I have this,” he said.

Lutnick’s comments appear to be a reference to Tether’s latest certification report. The report showed that as of September 30, it had $86.4 billion in reserve assets against $83.2 billion in liabilities.

The quality of Tether’s reserve assets is in question

Commercial paper has been a large part of Tether’s reserves for years, worrying some watchers. However, according to the latest attestation report, Tether’s underlying assets are mostly U.S. Treasuries, considered one of the safest assets in the world, and do not hold commercial paper.

Still, the industry isn’t entirely convinced about the quality of Tether’s assets. Most recently, credit rating agency S&P Global gave Tether a poor rating. This is based on determining characteristics such as “the quality of the assets backing Tether” as well as “weaknesses in other areas such as regulation and supervision, governance, transparency, liquidity and redeemability, and track record.” Concerns grew.

Tether users are also waiting for an official audit, which could reveal a more accurate picture of the company than a certification report.

CEO Lutnick has previously expressed that he is a fan of Tether. Cantor Fitzgerald is the custodian of Tether’s funds.

Mentioning the value of stablecoins

Regarding the question of the approval and listing of Bitcoin spot ETFs (Exchange Traded Funds), which is currently gaining more attention in crypto news, CEO Lutnick said, Questioning its true value, he argued that while crypto assets are attractive as speculation, people in countries such as Argentina, Venezuela and Turkey hold them for more fundamental reasons.

“For us, these are speculative assets, but for countries like Argentina, Venezuela, and Turkey, these crypto assets are important, and stablecoins are also important for those countries,” CEO Lutnick said. “It’s a way to do that.”

｜Translation and editing: Rinan Hayashi
｜Image: World Economic Forum
｜Original text: Wall Street CEO on Tether Controversy: ‘They Have the Money’