Tether Seeks Big Four Audit to Bolster Transparency

2 mins mins

Key Points:

Tether plans a full audit, boosting market transparency.
A Big Four firm will conduct this audit.
Tether’s US Treasury bond purchase increases reserve legitimacy.

tether-seeks-big-four-audit-to-bolster-transparency — Tether Seeks Big Four Audit to Bolster Transparency

Tether Negotiates Big Four Audit Amid Transparency Pressure

Tether, the leading stablecoin issuer, is actively negotiating with a Big Four accounting firm for a comprehensive reserve audit, according to BlockBeats News on March 22. This development follows the appointment of Simon McWilliams as the new Chief Financial Officer to guide the process.

Tether’s US Treasury Moves and Potential Regulatory Impacts

The negotiations with a Big Four firm mark an essential shift in Tether’s approach to transparency. Ardoino confirmed the audit is a top priority but did not specify the involved firm or timeline. This move follows criticism over Tether’s current practice of releasing limited quarterly reports instead of full audits. “This (audit) is our top priority,” Ardoino stated.

This shift comes as Tether expands its reserve strategy. Over $33.1 billion in US Treasury bonds have been purchased, positioning Tether as the seventh-largest US Treasuries holder. The 2024 reserves intend to boost investor confidence in asset backing. Tether was the 7th largest buyer of US Treasurys in 2024, according to Paolo Ardoino.

Market responses have been notable. The US Treasury bond acquisition underscores Tether’s commitment to reserve transparency. Analysts suggest this strategic expansion in reserves may stabilize market perceptions as Tether seeks an audit.

Did you know?
Tether’s move to become a major US Treasuries buyer aligns with its recent efforts to strengthen backed asset claims, historically only releasing quarterly attestations.

CoinMarketCap data reveals Tether (USDT) holds a market cap of $143.46 billion, with a circulating supply of approximately 143.53 billion tokens. The stablecoin currently trades at $0.9995. Despite a 26.8% decrease in 24-hour trading volume, the market dominance remains at 5.22%. USDT’s price fluctuated slightly, with a notable 0.06% decrease over the past week.

Experts observe regulatory and financial implications, as Tether’s increased treasury holdings might necessitate broader regulatory scrutiny. Compliance with new standards could fortify Tether’s standing amid pressures for stablecoin transparency. While the financial landscape for stablecoins continues evolving, Tether’s audit initiative marks a pivotal moment in aligning with regulatory expectations.