Tether, the company behind the largest stablecoin USDT, is reportedly collaborating with a Big Four accounting firm to audit its reserves and verify that each token is backed 1:1 with assets. This initiative addresses industry demands for greater transparency amid past controversies over the company’s claims. In a conversation with Reuters on March 21, Tether CEO Paolo Ardoino emphasized that a comprehensive audit is a top priority. Ardoino mentioned that the process might be facilitated by U.S. President Donald Trump’s supportive stance on cryptocurrencies, suggesting that his influence could encourage Big Four firms to engage more readily. While discussions with one of the major firms—PwC, EY, Deloitte, or KPMG—are ongoing, the specific firm involved has not been disclosed. Tether currently provides quarterly attestations, but these do not equate to a full annual audit, which would offer stronger reassurance to regulators and investors. Tether’s USDT aims to maintain a stable value pegged to the U.S. dollar, asserting that each token is backed by a reserve of cash, equivalents, and other assets. However, critics have persistently questioned the accuracy and completeness of these claims.
To bolster its financial operations, Tether recently appointed Simon McWilliams as Chief Financial Officer, indicating a more earnest approach to conducting a full audit. In September 2024, critics like Cyber Capital founder Justin Bons branded Tether a significant threat to the crypto ecosystem, citing the absence of independent reserve verification. His concerns were echoed by Consumers’ Research, a watchdog also questioning Tether’s transparency. Previously, Tether was fined $41 million in 2021 by the CFTC for misrepresenting its reserve backing. More recently, it has resisted European regulations under MiCA, which led exchanges like Crypto.com to delist USDT and other tokens.
Last month, it was revealed that Tether has been engaging with U.S. lawmakers to help shape federal regulations for the stablecoin industry. The company has been in discussions with Representatives Bryan Steil and French Hill, key figures behind the STABLE Act introduced on February 6. Ardoino confirmed that the company is also seeking to contribute to two additional stablecoin bills proposed by other legislators. Recently, Federal Reserve Chair Jerome Powell affirmed the central bank’s support for developing a regulatory framework around stablecoins during a Senate hearing on February 11, emphasizing the importance of consumer and saver protection.
Twitter: Tether just released the attestation for Q4 2024. Highlights as of December 31, 2024: $13.7 billion profit for 2024, $6 billion profit for Q4 2024, $113 billion in direct and indirect holdings, $7 billion in Tether’s excess stablecoin reserves (36% increase YoY).
