Tether, the operator of the world’s largest stablecoin USDT, plans to conduct a financial audit of the token collateral in the coming months.
Tether, like other stablecoin companies, is often criticized for its lack of audits. For several years, the company did not even disclose where the fiat currencies were stored, let alone detail the collateral for USDT. It seems that regulatory pressure has forced Tether to not only provide data on the assets that provide the token issuance, but also to conduct a financial audit.
During an interview on CNBC, Tether CTO Paolo Ardoino and chief attorney Stu Hoegner spoke about the upcoming audit that will confirm the assets.
“We’re working on financial audits that no one else in the stablecoin industry has done yet,” Hegner said.
He stressed that Tether is backed by assets in a 1: 1 ratio, however, not all of these assets are US dollars – bonds, safe loans, cryptocurrencies and other investment instruments are still used.
At the moment, the capitalization of USDT reaches $ 62 billion. The growth rate since the beginning of the year was 195%. At the same time, the growth rates of competing USDC and BUSD tokens are even higher. In response to Tether’s statements, rival company Paxos expressed its own opinion:
“Neither USDC nor Tether is a regulated digital asset. Simply because tokens are not regulated. In fact, USDC and USDT tokens are “stablecoins” only by claims. ”
Recently, US Federal Reserve (FRS) Chairman Jerome Powell said stablecoins should be regulated like bank deposits and mutual funds.