Tether’s Reserve Management Partner is Revealed by a Court Decision
The biggest stablecoin in the world, USDT, created by Tether, has come under fire for being opaque about the $67 billion reserve that underpins it. Despite efforts by the company to retain confidentiality, a recent Wall Street Journal investigation has revealed the name of the investment bank that oversees more than half of Tether’s reserves.
CANTOR FREDERICK chosen in 2021
The WSJ story states that Tether has chosen Cantor Fitzgerald of New York to manage its $39 billion bond portfolio. U.S. Treasury Bills make up more over half of Tether’s reserves, making up the majority of its holdings. This information was released after Tether paid $61 million in 2021 to resolve several inquiries concerning its reserve claims.
Tether’s bid for secrecy is rejected by the New York Supreme Court
Today, Tether’s attempt to prevent CoinDesk from learning more about the reserves supporting USDT was dismissed by the New York Supreme Court. This decision increases the mounting pressure on Tether to reveal more information about its ownership, holdings, and investment management procedures.