Tether Inc., a company that issues stablecoin USDT, is relying on a Wall Street firm Cantor Fitzgerald to help oversee its $39 billion bond portfolio, the Wall Street Journal reports, citing people with knowledge of the matter.
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While the report didn't reveal details of how Tether managed those assets, sources claim that Tether started using the Wall Street brokerage services in late 2021.
Tether holds over 80% of USDT's backing in cash, cash equivalents and other short-term deposits as well as commercial paper. A little over 5% of reserves stored in corporate bonds, funds and precious metals. The remaining part is divided between secured loans and crypto.
The news comes shortly after Tether reported $700 million of net profit in Q4, 2022. The company added that amid the crypto winter it managed to not only execute over $21 billion dollars in redemptions, but also issued over $10 billion of USDT.
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