Tether taps Cantor Fitzgerald to help oversee bond portfolio: Report

Citing sources acquainted with the matter, the Journal reported that fiscal services institution Cantor Fitzgerald is helping Tether oversee a $39 cardinal enslaved portfolio comprised of United States Treasury securities. The study indicated that immoderate firms connected Wall Street are consenting to enactment crypto work providers contempt ongoing regularity concerns facing the industry.

Founded successful 1945, Cantor Fitzgerald specializes successful concern banking services, including organization equity and fixed-income sales. The institution claims to employment implicit 12,000 people. Beyond helping to “manage” a information of Tether’s portfolio, Cantor Fitzgerald’s circumstantial engagement with the stablecoin issuer wasn’t spelled retired successful the Journal’s reporting.

Cointelegraph reached retired to a spokesperson astatine Tether to inquire astir its alleged concern with Cantor Fitzgerald. The institution issued the pursuing statement:

"Tether has grown to beryllium the astir important subordinate successful the integer assets manufacture and is collaborating and regularly exploring caller concern opportunities with high-quality counterparties."

Tether’s full assets arsenic of Dec. 31 were $67 billion, exceeding its consolidated liabilities of $66 cardinal and giving the institution excess reserves of astatine slightest $960 million. The institution reported $700 cardinal successful nett profits during the 4th fourth based connected an autarkic attestation from BDO.

— Gabor Gurbacs (@gaborgurbacs) February 9, 2023

While Tether has attempted to dispel rumors astir its solvency and accounting standards, the institution has been singled retired repeatedly by large publications for not being transparent astir the assets backing its USDT reserves. In 2022, the criticisms shifted from whether Tether’s USDT is afloat backed to the creation of the assets underpinning the stablecoin. By October, Tether had unwound its exposure to commercialized insubstantial successful favour of Treasury bills successful effect to nationalist scrutiny astir its portfolio — namely, its alleged oversized vulnerability to Chinese commercialized paper.

Related: 82% of Tether reserves held successful ‘extremely liquid’ assets, according to attestation

Tether’s USDT remains the largest stablecoin by marketplace capitalization astatine astir $68.2 billion, according to CoinMarketCap.

Stablecoin issuer Tether Holdings is relying connected the services of a large Wall Street steadfast to negociate its Treasury portfolio, according to a Feb. 10 study by The Wall Street Journal.