Cantor Fitzgerald's Role in Tether's Reserve Assurance and Stablecoin Expansion
Tether's USDT stablecoin currently has a circulating supply exceeding $180 billion, with Cantor Fitzgerald providing reserve assurances that have bolstered its legitimacy. Cantor Fitzgerald has acted as custodian for Tether's U.S. Treasuries since at least 2021, a role confirmed publicly when Then-Chairman Howard Lutnick, now U.S. Commerce Secretary, acknowledged Cantor's involvement in December 2023. The arrangement with Cantor added much-needed stability to Tether, which had previously experienced challenges with banking relationships and questions about its reserve backing.
Brandon Lutnick, Cantor Fitzgerald's current chairman, personally verified Tether's reserves during Consensus Toronto 2025, addressing and debunking rumors surrounding the stablecoin's assets. Despite earlier scrutiny, including a 2021 settlement with New York Attorney General Letitia James over alleged missing assets—where Tether agreed to publish reserve breakdowns—Tether continues to maintain its position in the market.
Following the recent passage of the GENIUS Act, Tether announced plans to launch a U.S.-specific stablecoin, appointing Bo Hines to lead this new division. Cantor Fitzgerald will manage the reserves for this initiative, continuing their custodial role.
However, concerns remain; S&P Global Ratings downgraded USDT due to the reserve composition containing Bitcoin and the risk of potential undercollateralization if Bitcoin prices decline. During congressional testimony earlier this year, Howard Lutnick noted that while Cantor had not performed continuous diligence on Tether's finances, he asserted that Tether holds every penny of its reserves and can provide liquidity on demand.
