KEY POINTS
- Tether cemented its position as the 10th largest Bitcoin holder earlier this year
- USDT garnered the second-lowest rating in S&P Global's evaluation of stablecoin stability
- Cantor Fitzgerald CEO confirmed that the company indeed possesses the funds it reported
Tether CEO Paolo Ardoino has issued a statement after Howard Lutnick, chairman, CEO, and the majority owner of financial services giant Cantor Fitzgerald validated the strength of the crypto business' reserves and confirmed the stablecoin issuer's claims.
"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 not just an affirmation; it's concrete evidence of Tether's financial strength," Ardoino, who was a long-time CTO of Tether before he was made its CEO last year, told International Business Times via email.
The stablecoin issuer has endured prolonged scrutiny regarding its backing of USDT, a stablecoin that currently boasts an extensive market capitalization exceeding $95 billion, firmly establishing it as the predominant stablecoin in global circulation.
It garnered the second-lowest rating in S&P Global's evaluation of stablecoin stability and despite having issued attestations, the stablecoin issuer has never undergone a formal comprehensive financial audit, rendering it susceptible to criticisms and speculations.
But on Tuesday, Lutnick validated what Tether has been saying all along, noting that it has been the custodian of Tether Holdings Ltd., and has reviewed a portion of the firm's balance sheet, confirming that the company indeed possesses the funds it reported.
"They have the money they say they have, I've seen a whole lot and the firm has seen whole a lot and they have the money," Lutnick said in an interview at the World Economic Forum in Davos. "And so there has always been a lot of talk 'Do they have it or not?' and I'm here with you guys and I'm telling you we've seen it and they have it."
Lutnick had previously shown his support for Tether, which reflects his positive stance toward the stablecoin.
Cantor Fitzgerald also serves as a custodian for the treasuries of the stablecoin issuer, reinforcing the symbiotic relationship between key figures in the financial industry and Tether, while also highlighting the role of financial institutions in the custody of digital asset reserves.
In February 2021, Tether and its parent company, Bitfinex, entered into an agreement with the New York Attorney General's Office, mandating the submission of quarterly reserve reports for two years.
Notably, Tether is currently in the process of developing a real-time reserve reporting system, which is expected to potentially debut in the year 2024.
Earlier this year, Tether made a significant move by withdrawing 8,888.88 BTC (approximately $379 million) from the Bitfinex exchange, cementing its position as the 10th largest Bitcoin holder.
With the latest development, Tether now holds 66,465.2 BTC, valued at approximately $2.82 billion. The average cost price is $25,176 per BTC.
