In the wake of the US SEC's tight surveillance on the crypto market, it appears there are some indications about how Tether handles its reserve funds.

With reports of businesses backing its reserves, the mystery around the biggest stablecoin seems to be slowly being revealed. According to sources, the foundation for keeping Tether's reserves is a Wall Street-based company. This is crucial since worries about a lack of transparency about the stablecoin's proof of reserves have been expressed. Even though the stablecoin's creator tried to improve auditing procedures and the assets it used to back the cryptocurrency, concerns about a lack of transparency persisted.

Tether's $39 billion bond portfolio is reportedly managed by Wall Street financial services company Cantor Fitzgerald. It's interesting to note that Cantor Fitzgerald has had some long-standing connections to the bitcoin sector. The business has previously said in 2017 that it will provide futures contracts connected to Bitcoin (BTC). An additional business, BGC Partners, a Cantor subsidiary, looks to be getting ready to debut its own cryptocurrency exchange in the first quarter of 2023.

The mysterious disclosure of Tether's reserves comes at a time when concerns about market transparency in cryptocurrencies are being voiced. Recently, Kraken U.S., a cryptocurrency exchange, was fined by the Securities and Exchange Commission (SEC) for selling unregulated securities through crypto staking. Although stablecoins maintain equilibrium with their entire market value differently than staking, the hazardous nature of these assets casts question on the stability of staking.

The algorithmic stablecoin TerraUSD (UST) crashed in May 2022, causing a catastrophic crypto catastrophe that had long-lasting effects on the market. After then, concerns regarding the lack of transparency surrounding stablecoin reserves were raised.

Tether (USDT), which has a market worth of $68.20 billion, is the most traded cryptocurrency because it can be exchanged for the value of one US dollar.

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