Tether taps Cantor Fitzgerald to help oversee bond portfolio: Report

It is reported by The Journal, citing sources familiar with the situation. informed that financial services firm Cantor Fitzgerald is helping Tether control a $39 billion bond portfolio of U.S. Treasury securities. The report indicated that some firms on Wall Street are willing to support crypto service providers despite the ongoing regularity issues facing the industry.

Founded in 1945, Cantor Fitzgerald specializes in investment banking, including institutional equities and fixed income sales. The company claims to employ more than 12,000 people. Aside from helping to “manage” part of Tether’s portfolio, Cantor Fitzgerald’s specific involvement with the stablecoin issuer was not listed in the magazine’s report.

Cryptooshala reached out to a Tether representative to inquire about his alleged partnership with Cantor Fitzgerald. The company released the following statement:

“Tether has become the most important player in the digital asset industry, collaborating and regularly exploring new business opportunities with high-end counterparties.”

Tether’s total assets were $67 billion as of December 31, exceeding its $66 billion consolidated liabilities and giving the company excess reserves of at least $960 million. The company reported a net income of $700 million in the fourth quarter based on an independent BDO assessment.

While Tether tried to dispel rumors about its solvency and accounting standards, major publications have repeatedly pointed to the company for the opacity of the assets that support its US dollar reserves. In 2022, criticism has shifted from whether USDT Tether is fully backed to the asset composition behind the stablecoin. By October, Tether had ditched commercial paper in favor of Treasury bills in response to public scrutiny of its portfolio, namely its alleged excessive exposure to Chinese commercial paper.

According to attestation, 82% of Tether’s reserves are held in “extremely liquid” assets.

USDT Tether remains the largest stablecoin by market capitalization at almost $68.2 billion, according to CoinMarketCap.

According to a Feb. 10 report in The Wall Street Journal, stablecoin issuer Tether Holdings relies on the services of a large Wall Street firm to manage its treasury portfolio.

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