Tether transparency gap remains wide despite Cantor claims

Tether reported $181,223,149,214 in total reserves as of September 30, 2025. Howard Lutnick, CEO of Cantor Fitzgerald, says Tether has the money because he manages many of their treasuries. He claims he has seen the assets directly. While Howard Lutnick claims he sees the money because Cantor Fitzgerald manages many of Tether’s treasuries, the lack of a completed full financial audit as of mid-2026 leaves questions about the exact composition of these reserves. In 2022, Cantor Fitzgerald managed a $39 billion portfolio of Tether assets. Tether’s most recent attestation claimed $56.6 billion in US treasuries, whereas Lutnick claims he holds over $90 billion in their treasuries. This figure reaches $72.6 billion if you include overnight reverse repurchase agreements and money market funds. Tether uses BDO Italia for quarterly attestations, which provide category-level breakdowns but lack the depth of a full audit. Tether announced it hired a Big Four firm in March 2026, but the company has not produced a full audit. I find the refusal to submit to a full audit even after hiring a Big Four firm to be an admission of weakness.

Diversification into Bitcoin and gold

The reserve composition shows a shift toward diverse assets. Tether holds $9,856,011,011 in Bitcoin, valued at $114,160 per coin, and $12,921,449,635 in precious metals. It also holds $14,604,086,904 in secured loans. This contrasts with USDC, which holds zero Bitcoin and zero gold.

Tether’s US Treasury exposure amounts to roughly $135 billion to $138 billion when including indirect holdings. The company also allocates 5.44% of its assets to Bitcoin. You should watch how these non-cash assets behave during market volatility. Tether’s Q1 2026 attestation showed $141 billion in US Treasury and short-term exposure. Tether generated over $10 billion in profits during the first nine months of 2025, which it reinvests into assets like Bitcoin. The circulating supply reached approximately $186.91 billion by January 18, 2026. Why does Tether maintain such high levels of secured loans?

Regulatory scrutiny and transparency rankings

S&P Global Ratings gave Tether a 4 for assets and stability, which marks its ranking as constrained. The low marks reflect a lack of information on entities that act as custodians, counterparties, or bank account providers for USDT. In contrast, S&P gave USDC a 2 rating for stability. Circle manages USDC reserves through the BlackRock Circle Reserve Fund, which provides daily SEC filings and weekly updates. Tether provides quarterly reports with a 31-day publication lag. I find Tether’s transparency profile dismal compared to its main rival. Tether lacks GENIUS Act registration and MiCA licensing, while USDC meets these requirements through its status as an e-money token.

S&P also flagged Tether’s exposure to higher-risk assets with limited disclosure and its lack of asset segregation to protect against insolvency. TUSD received a 5 for stability, the lowest possible mark, because of the scarcity of public information about the segregation of assets. FDUSD received a 4 for stability because it lacks regulation or supervision by a regulatory authority. Tether faces a history of regulatory scrutiny, including a $41 million fine from the CFTC in 2021 and an $18.5 million settlement with the New York Attorney General. In 2024, the Department of Justice reportedly investigated the company for violations of anti-money-laundering and sanctions rules. Tether’s name remains a focus in discussions regarding the $4.3 billion Binance settlement. The company’s headquarters moved to El Salvador, where it operates under the oversight of the CNAD.