Tether Utilizing Services of Cantor Fitzgerald for Managing Bond Portfolio

• Cantor Fitzgerald is assisting Tether in managing a $39 billion bond portfolio.
• The USDT issuer had effectively cut off its exposure to commercial paper.

According to an article published by The WSJ on February 10th, stablecoin issuer Tether Holdings is using the services of a big Wall Street company to oversee its Treasury holdings.

The Journal said, citing people familiar with the situation, that Cantor Fitzgerald is assisting Tether in managing a $39 billion bond portfolio of U.S. Treasury assets. Despite persistent regulatory worries, the report suggests that some Wall Street corporations are eager to assist crypto service providers.

Cantor Fitzgerald was established in 1945. And is a leading provider of investment banking services, such as institutional equities and fixed-income sales. More than 12,000 individuals are employed by the firm, so they say. The Journal didn’t specify Cantor Fitzgerald’s role with the stablecoin issuer beyond managing some of Tether’s portfolio.

Commercial Paper Exposure Removed

As of December 31st, Tether had $67 billion in total assets, which was more than its $66 billion in consolidated liabilities, and gave them surplus reserves of at least $960 million. BDO’s independent attestation confirmed the company’s claimed net earnings of $700 million for the quarter.

Not only that, but the USDT issuer had effectively cut off its exposure to commercial paper. By the end of 2022, the business committed to removing the commercial paper from its reserves, as it had previously committed.

Tether’s management and disclosure of the assets backing the stablecoin have been subject to criticism and fines. Following a succession of sector failures, U.S. authorities warned banks last month that they would be considering their bids to enter the cryptocurrency market with extreme care.