Stablecoin issuer Tether reportedly has over $180 billion in its stablecoin USDT in circulation, bolstered by confidence from a major financial firm regarding its asset backing.
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Brandon Lutnick, chairman of Cantor Fitzgerald, stated at CoinDesk’s Consensus Toronto 2025 event that he has personally audited Tether’s reserves.
“I verified a significant portion of their reserves, dispelling many rumors,” he remarked in May.
Cantor has acted as a custodian for Tether’s U.S. Treasuries since at least 2021. The previous Chairman, Howard Lutnick — now the U.S. Commerce Secretary — confirmed his firm’s services to Tether in December 2023.
By doing so, the Lutnicks and Cantor have enhanced the legitimacy and stability of the world’s leading stablecoin issuer, which had previously faced challenges in banking relations and public trust regarding its backing. Tether reached a settlement with the New York Attorney General’s office in 2021, when Attorney General Letitia James claimed the company lacked over $800 million in assets to support its reserves.
As a part of the settlement, Tether committed to disclosing its reserve details.
The company continues to expand, recently announcing plans to launch a new stablecoin for the U.S. following the passage of this year’s GENIUS Act, with former White House official Bo Hines leading this initiative. Cantor will also oversee this firm’s reserves.
Despite the company’s progress and Cantor’s reassurances, skepticism persists: just last month, S&P Global Ratings downgraded USDT, raising concerns about the composition of its reserves, particularly regarding Bitcoin . A downturn in the price of this leading digital asset could leave USDT significantly undercollateralized, the report indicated.
Howard Lutnick moderated his remarks during his Congressional testimony earlier this year, stating that Cantor had not been continuously reviewing Tether’s financials, but added, “Tether has all its funds and can generate liquidity instantly.”
