Does Cantor Fitzgerald manage over half of Tether’s reserves?

Wall Street brokerage Cantor Fitzgerald has been supervising Tether Holdings’ $39B Treasury bond portfolio according to the Wall Street Journal. Hong Kong-based Tether is the issuer of stablecoin tether (USDT-USD), the world’s most traded digital token with a market cap of $68.2B.

The news followed Tether’s attestation report Thursday showing its assets stood at $67.04B at the end of 2022, 58% ($39.2B) of which consisted of government backed Treasury bills.

The company started moving its reserves into Cantor in late 2021, around the time it paid a civil monetary penalty of $41M to settle charges brought against by the Commodity Futures Trading Commission.

Separately, Federal Reserve Board Governor Christopher Waller said earlier that cryptocurrency is “nothing more than a speculative asset, like a baseball card.”

The company behind the largest stablecoin USDT – revealed a net profit of around $700 million in the fourth quarter of 2022. It ended last year with excess reserves of $960 million and at least $67 million billion in consolidated total assets.