Tether Holdings Hires Major Wall Street Firm to Manage Treasury Portfolio

According to a story published on February 10 by The Wall Street Journal, stablecoin issuer Tether Holdings has contracted the services of a prominent Wall Street business in order to manage its portfolio of Treasury securities.

The Wall Street Journal cited unnamed persons familiar with the situation in reporting that the financial services business Cantor Fitzgerald is assisting Tether in managing a bond portfolio consisting of United States Treasury securities that is valued at $39 billion. According to the study, there are certain companies on Wall Street who are eager to help cryptocurrency service providers despite the continuous regulatory worries that are impacting the business.

Cantor Fitzgerald is an investment banking firm that was established in 1945 and specializes in providing services such as institutional equity and fixed-income sales. It is said that the corporation employs more than 12,000 workers. Cantor Fitzgerald’s precise role with the stablecoin issuer was not detailed in the material that appeared in the Journal. The only mention of Cantor Fitzgerald’s participation was that it “managed” a piece of Tether’s portfolio.

Tether has become the most significant participant in the digital assets sector, and the company is actively engaging with high-quality counterparties and investigating new business prospects on a regular basis.

As of the 31st of December, Tether’s total assets amounted to $67 billion, which was more than its consolidated liabilities, which were $66 billion, and provided the corporation with surplus reserves of at least $960 million. According to an independent attestation provided by BDO, the corporation’s net earnings for the fourth quarter came in at $70 million million dollars.

While Tether has made efforts to dispel rumors about its solvency and accounting standards, the company has been called out repeatedly by major publications for not being transparent about the assets that back its USDT (USDT) reserves. Tether has responded to these criticisms by saying that it will continue to work toward this goal. In the year 2022, the focus of the criticism switched from the question of whether or not Tether’s USDT is completely supported to the question of the makeup of the assets that support the stablecoin. In response to increased public scrutiny about its portfolio, namely its purported excessive exposure to Chinese commercial paper, Tether had, by the month of October, unwound its exposure to commercial paper and switched to investing in Treasury bills instead.

According to CoinMarketCap, the USDT token issued by Tether continues to be the most valuable stable currency with a market valuation of about $68.2 billion.