Stablecoin Issuer Tether has engaged with Big Four accounting firms to audit asset reserves and ensured that USDT (USDT) Stablecoin is supported by a 1:1 ratio.
Tether CEO Paolo Aldoino reportedly said the auditing process would be easier under Donald Trump. This comes after industry concerns have risen about the possibility of Tether’s FTX-style liquidity crisis due to a lack of third-party audits.
Tether to create the first complete audit after scrutiny
“If the US President says this is a top priority for the US, we are very pleased with it because the Big 4 auditing company has to listen,” Aldoino told Reuters on March 21.
“That’s our number one priority,” Aldoino said. It is reported that Tether is currently subject to quarterly reports but not entirely independent annual audits. It is much broader and offers more guarantees to investors and regulators.
However, Ardoino did not specify Pricewaterhousecoopers (PWC), Ernst & Young (EY), Deloitte or KPMG.
Tether recorded a profit of $13.7 billion in 2024. Source: Paolo Ardoino
Tether’s USDT maintains a stable value by claiming it is fixed in the US dollar at a 1:1 ratio. This means that each USDT token is supported by a reserve equivalent to the circular supply.
These reserves include traditional currencies, cash equivalents and other assets.
Earlier this month, Tether hired Simon McWilliams as Chief Financial Officer, preparing for a full financial audit.
Industry concerns about Tether audit shortages
In September 2024, Cybercapital founder Justin Bonds was one of the industry people to raise concerns about Tether’s lack of transparency.
“(Tether) is one of the biggest existential threats to the code. They have $118 billion in collateral without evidence, as we have to trust, even after the CFTC fined them in 2021 for lying about their reserves,” Bonds said.
Related: Tether freezes USDT of $27 million in licensed Russian replacement garantex
At about the same time, a consumer protection group, Consumer Survey published a report criticizing Tether for its lack of transparency.
Just three years ago, in 2021, the US Commodity and Futures Trade Commission (CFTC) punished a $41 million civil penalty for lying about the USDT being fully supported by its reserves.
Meanwhile, recently Tether has expressed disappointment at the new European regulations that forced interactions like Crypto.com to make USDT and nine other tokens MICA compliant.
“It’s unfortunate to see the rushing action brought about by a statement that does little to clarify the basis for such a move,” a Tether spokesman told Cointelegraph.
Cointelegraph contacted Tether but did not receive a response by the time of publication.
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