Tether to conduct full audit of USDT reserves

Chief Technology Officer Paolo Ardoino noted that the MHA accounting firm is now confirming the coin's collateral on a quarterly basis

20.06.2022 - 16:15

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What’s new? Tether Chief Technology Officer Paolo Ardoino announced the company's intentions to conduct a full audit of the reserves of its centralized USDT stablecoin. To that end, the issuer of the stablecoin, which is pegged to the US dollar, will engage a leading accounting firm. Ardoino also noted that the MHA accounting firm is currently confirming the reserves backing USDT on a quarterly basis. He said this in an interview with Euromoney.

Information on the Euromoney website

What else does Ardoino say? He noted that the collapse of the Terra ecosystem and its UST algorithmic stablecoin could accelerate the advent of a regulatory framework for stablecoins. In early June, US senators Cynthia Lummis and Kirsten Gillibrand introduced a crypto-regulation bill that, among other things, proposes to place reserves that back stablecoins under supervision, potentially reinforcing their similarity to banks. Ardoino added:

“If you market something as a stablecoin, it should be stable, full stop. You cannot have a guy who wakes up in the morning and creates a new cryptocurrency, backed by another cryotocurrency, backed by good will, and call it a stablecoin.”

USDT was created by Tether Limited in 2015 and is the largest stablecoin on the market and ranks third in the overall ranking of cryptocurrencies by capitalization at $67,6 billion, according to CoinGecko.

Earlier, New York Supreme Court rejected Tether's petition asking for permission to block public access to documents explaining the composition of USDT reserves over the past few years.

In late May, Circle began publishing weekly reports on the reserves of its USDC stablecoin. This move is intended to increase USDC’s transparency operation amid the TerraUSD (UST) rate crash and problems with pegging other stablecoins to the US dollar.

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