Tether Reserves: The mystery behind the largest stablecoin appears to be slowly uncovering with news of companies supporting its reserves. According to reports, a Wall Street based firm is the backbone behind maintaining Tether’s reserves. This is of huge importance as concerns were raised around lack of transparency about the stablecoin’s proof of reserves. Although the company behind the stablecoin try to make changes in terms of auditing and the assets it holds to back the cryptocurrency, questions remained about lack of transparency.
Tether Bond Portfolio
According to a Wall Street Journal report, Cantor Fitzgerald, a Wall Street financial services firm, oversees Tether’s i$39 billion bond portfolio. Interestingly, Cantor Fitzgerald itself has had some close links to the cryptocurrency market for many years now. The company had in 2017 announced it would launch Bitcoin (BTC) linked futures contracts. Another company, BGC Partners, an affiliate of Cantor, appears to be in preparation to launch its own crypto exchange in early 2023.
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