Tether, the issuer of stablecoin, is reportedly in discussions with a leading accounting firm from the Big Four to assess its asset reserves and confirm that its USDT (USDT) stablecoin is supported at a 1:1 ratio.
Allegedly, Tether’s CEO Paolo Ardoino stated that the auditing procedure would be simpler under pro-crypto President Donald Trump. This development arises amidst increasing worries within the industry regarding a possible FTX-like liquidity crisis affecting Tether due to its absence of third-party audits.
Tether to conduct its initial comprehensive audit following criticism
“If the President of the United States declares this as a top priority for the nation, the Big Four auditing firms will have to pay attention, and we are quite pleased with that,” Ardoino remarked to Reuters on March 21.
“It’s our utmost priority,” Ardoino mentioned. Reports indicate that Tether currently undergoes quarterly reporting but lacks a full independent annual audit, which is significantly more thorough and offers greater reassurance to investors and regulators.
Nonetheless, Ardoino did not disclose which of the Big Four accounting firms—PricewaterhouseCoopers (PwC), Ernst & Young (EY), Deloitte, or KPMG—he intends to engage.
Tether achieved a profit of $13.7 billion in 2024. Source: Paolo Ardoino
Tether’s USDT sustains its consistent value by asserting that it is pegged to the US dollar at a 1:1 ratio. This indicates that each USDT token is reinforced by reserves matching its circulating supply.
These reserves consist of traditional currency, cash equivalents, and various other assets.
Earlier this month, Tether appointed Simon McWilliams as its chief financial officer to facilitate a comprehensive financial audit.
Concerns within the industry about Tether’s audit absence
In September 2024, Justin Bons, founder of Cyber Capital, expressed concerns regarding Tether’s transparency.
“[Tether is] one of the most significant existential dangers to crypto. We are expected to trust that they hold $118B in collateral without any proof! Even after the CFTC imposed a fine on Tether for misrepresenting their reserves in 2021,” Bons stated.
Related: Tether freezes $27M USDT on sanctioned Russian exchange Garantex
During the same period, Consumers’ Research, a consumer advocacy organization, released a report criticizing Tether for its lack of transparency.
Only three years earlier, in 2021, the United States Commodities and Futures Trading Commission (CFTC) charged Tether a $41 million civil monetary penalty for falsely claiming USDT was fully backed by reserves.
In a more recent development, Tether has expressed dissatisfaction regarding new European regulations that have compelled exchanges like Crypto.com to remove USDT and nine other tokens in order to comply with MiCA.
“It is disheartening to observe the rushed decisions prompted by statements that do little to clarify the rationale for such actions,” a Tether spokesperson remarked to Cointelegraph.
Cointelegraph reached out to Tether but had not received a response before publication.
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