Cantor Fitzgerald Chairman Brandon Lutnick Says He Personally Checked Tether’s Reserves
Cantor Fitzgerald’s chairman, Brandon Lutnick, recently revealed his personal involvement in verifying Tether’s reserves during the early stages of the firms’ collaboration. Speaking at Consensus 2025 in Toronto, Lutnick addressed widespread rumors and speculation surrounding Tether’s asset backing. These concerns, prevalent in the early days of their partnership, culminated in allegations from New York Attorney General Letitia James in 2019, suggesting a significant shortfall in Tether’s reserves. While the exact amount alleged varied, the substantial discrepancy fueled distrust within the crypto community.
Lutnick’s statement directly counters these allegations. He emphasized his personal role in scrutinizing Tether’s reserves, asserting that their due diligence disproved many of the circulating rumors. This verification process, undertaken during a period of intense scrutiny and uncertainty, provided Cantor Fitzgerald with the confidence to proceed with its relationship with Tether.
The timing of Lutnick’s appointment as chairman is noteworthy. His ascension to the position followed his father, Howard Lutnick’s, appointment as U.S. Commerce Secretary under President Donald Trump. This familial connection adds another layer of context to Cantor Fitzgerald’s engagement with Tether, highlighting the intersection of high-profile business relationships and the cryptocurrency industry.
Lutnick also publicly refuted a Bloomberg report claiming he had interned at Tether in Lugano, Switzerland. Despite denying the internship, he acknowledged gaining significant cryptocurrency knowledge from Tether representatives, characterizing their influence as an “orange-pilling” experience. This implies a significant shift in his understanding and perspective on cryptocurrencies, possibly influencing Cantor Fitzgerald’s strategic decisions.
The settlement between Tether and the New York Attorney General in 2019 seemingly resolved the initial concerns about reserve backing. However, Lutnick’s account provides further insight into the behind-the-scenes verification processes that underpinned Cantor Fitzgerald’s decision to proceed with its business relationship with Tether. This emphasizes the importance of independent verification and due diligence in navigating the complexities of the cryptocurrency market, particularly regarding stablecoin transparency and asset backing.
