Tether has enough backing for its USDT
During an interview with Bloomberg TV, Cantor’s chief executive Fitzgerald confirmed that Tether has enough capital to support the more than 95 billion USDT outstanding
Howard Lutnick, chief executive of Cantor Fitzgerald, a US financial services company, spoke about the reserves of Tether’s USDT stablecoin, stating that the cryptocurrency is adequately backed by liquid assets.
During an interview with Bloomberg TV, Lutnick confirmed that Tether has enough capital to support the more than 95 billion USDT outstanding. When questioned about Tether’s real ability to back the issued USDTs, he said that “they do,” highlighting the proper management of its assets.
The CEO’s comments reflect data from Tether’s latest certification report, showing $86.4 billion in assets versus $83.2 billion in liabilities.
Since 2017, USDT’s endorsement has been a controversial issue. Tether has resolved several lawsuits and has committed to greater transparency in the management of assets that support the currency’s parity with the US dollar.
USDT, being the third-largest cryptocurrency in market capitalization and the stablecoin with the most outstanding assets, faces challenges beyond reserve management. A UN report singled out USDT as a means to commit financial crimes, including money laundering and scams in Southeast Asia.
The Tether team rejected these claims in a statement, defending the opportunities that stablecoins on public networks offer to fight crime.
Cantor Fitzgerald, being the custodian of the Treasury bonds in the USDT reserves, adds credibility to Lutnick’s statements about the finances of Tether, the largest-capitalized stablecoin issuer in the market.
K. Tovar
Source: Diariobitcoin
(Reference image source: Drawkit Illustrations, Unsplash)
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