Forbes reports on Tether reserves placed with Cantor Fitzgerald and Capital Union

New York-based Cantor Fitzgerald, along with Bahamas-based Capital Union and Ansbacher, held part of the stablecoin USDT collateral. Forbes reports, citing informed sources and documents obtained from Tether Limited.

The issuer moved $37 billion of reserves to Capital Union after settlement in February 2021 of claims by the New York State Attorney General’s Office related to the company’s financial operations tied to an $850 million loss.

Ansbacher is a subsidiary of Deltec Bank. Stated at the start of 2021 that USDT is fully backed.

Tether Limited appointed Cantor Fitzgerald as custodian of US Treasury securities. The organization is one of the primary dealers of the FRS. A trading firm affiliated with Cantor Fitzgerald, BGC Partners, carried out USDT operations on large volumes.

The publication noted that representatives of the issuer promised not to disclose partner names or the composition of reserve assets.

Transparency is lacking with regard to the company09s leadership. In particular, the Chief Investment Officer is Silvano Di Stefano, who is not listed on the company’s website. Earlier, CTO Paolo Ardoino had confirmed the accuracy of the data, Forbes noted.

The Wall Street Journal previously revealed the owners of Tether.

In September 2022, a New York court ordered the company to provide financial documents for assessing the reserves backing the stablecoin as part of a proceeding into possible market manipulation.

A month later, reports indicated that the US Department of Justice investigation into Tether had been renewed, according to the press.

In October–December 2022, recorded a net profit of $700 million. Ardoino noted that the issuer zeroed out commercial paper on its balance sheet and pledged to reduce secured loans during 2023.