• Tether will conduct an audit in order to refute claims of transparency

  • Tether’s general counsel has announced that a formal audit will be conducted in the coming months. USDT is a well-known stablecoin that ranks third among worldwide digital assets. Because blockchain is considered unhackable by cybersecurity professionals, the majority of people today believe in its security.

    Many in the cryptocurrency world, however, have been waiting for a financial audit of the stablecoin. The growing regulatory difficulties in the crypto market appear to have sparked the Tether team into action. As a result, they’ve announced that an audit will be conducted soon.

    Executives from Tether grant a media interview.

    Another unusual occurrence is the appearance on CNBC of Tether’s CTO Paolo Arduino and general counsel Stu Hoegner.

    The hosts addressed the duo some questions on USDT’s transparency and backing during the interview. The general counsel responded by stating that the team is trying to be the first in their industry to receive financial audits.

    As the USDT trades in the green zone, the crypto market has recently turned bullish.

    He also stated that the audits will take months rather than years. He noted that the stablecoin is supported by reserves when it comes to the backing.

    However, according to Hoegner, some of the reserves are not in US dollars. More US dollars, as well as other cash equivalents, secured loans, crypto assets, bonds, and other assets, make up the reserves.

    The market cap for USDT, on the other hand, is $62 billion according to Tether’s Transparency report. Despite the fact that the number has climbed by 195 percent since the beginning of 2021, it still trails competitors such as BUSD and USDC.

    According to a reserve report provided by Circle on July 21, 61 percent of USDC reserves are cash and cash equivalents. Treasury, bond, and commercial paper accounts account for the remaining 39%.

    Taxes Makes a Decision To Attack

    Paxos, a competitor of Tether, has criticized the stablecoin and Circle in a blog post published on July 21, 2021. Paxos says in the post that the duo is not subject to banking regulations. USDC and Tether, in his opinion, are only Stablecoins in a name.

    To back up its assertions, Paxos announced that its stablecoin reserves are a mix of cash and cash equivalents.

    However, in May, Tether revealed USDT’s total backing, which included cash 3.87 percent, fiduciary deposits 24.20 percent, treasury bills 2.94 percent, cash equivalents, commercial papers (65.39 percent), and other assets. Because its operations are being intensively scrutinized by US politicians, this measure was taken.

    Tether also began reporting on its reserves after reaching a deal with the New York Attorney General’s Office 5 months ago. Since then, the corporation has continued to issue similar reports.

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