Tether will conduct a comprehensive audit with one of the top 12 accounting firms to increase the transparency of its USDT reserves.
Tether, the biggest stable coin in the world with $68 billion in assets, will conduct a complete audit with one of the top 12 accounting firms in order to increase the transparency of its USDT holdings.
The decision comes as USDT has progressively lost market share in recent weeks as a result of a series of redemptions, in part due to a decline in the trust after the Terra blockchain’s collapse last month.
Tether, the issuer of the USDT stablecoin, is actively collaborating with MHA, a Cayman Islands-based accounting company. The organisation has only generated attestations so far, which are snapshots of a company’s financial sheet as of a certain date.
In an interview with Euromoney, Tether’s chief technical officer Paolo Ardoino said that the business was currently working on a full audit that, unlike attestations, would assist provide a comprehensive picture of the company’s financial status over a certain time period.
“I believe it is in the top 12, so it’s not too horrible. “The big four are a little more reticent to do a comprehensive audit when the regulations are unclear,” Ardoino added, noting that smaller stablecoin competitors were still weak in this regard.
Tether is under pressure to reveal USDT reserves
Tether is under pressure to provide more information about the reserves underpinning USDT, an asset tethered to the U.S. dollar. Proponents of transparency claim that it would aid investors in comprehending possible dangers and determining how auditors engage with the firm.
While Tether has disclosed its bankers, it has remained tight-lipped about its USDT reserves, claiming privacy concerns. Ardoino said that crypto assets represented a modest percentage of Tether’s holdings.
Over the last eight months, Tether has reduced its holdings of commercial paper from $40 billion to $15 billion, easing market worries about risk in the company’s portfolio. Ardoino disclosed that a portion of its reserves had been invested in securities having a maturity date within three months.
Euromoney said that Tether is supplying the New York Attorney General Letitia James with monthly reports on its reserves and activities as part of an agreement on an $18.5 million settlement and a trading prohibition reached in February of last year.