Tether’s General Council recently revealed their plans to release auditory results in the CNBC segment ‘Tech Check’. General Council Stuart Hoegner said that it would take a few months for the company to conduct the audit and release its results.
USDT (Tether), the most popular digital-to-fiat currency, has recently turned controversial after the company released a detailed breakdown of its asset’s reserves. This, coupled with some previous incidents including false statements by the company, has people questioning the credibility of the stablecoin.
It is revealed that this ‘financial audit’ will be much more accurate and rigorous than the previously released data. The company reiterated that all their tokens are backed by assets, despite previously being unwilling to render said data to respective authorities.
The revelation came a day after rival company Circle revealed reserves data of its currency USDC (USD Coin). Tech Check host Deirdre Bosa asked them questions about the issuance of audits and the authenticity of its unverifiable Commercial Paper. Hoegner replied to the questions saying:
“We are working towards getting financial audits, which no one else in the stablecoin sector has done yet. We hope to be the first to do so and it will be coming in months and not years.”
He revealed that the company has reserves in the form of cash, cash equivalents, crypto assets, bonds, and others. The company announced in 2017 that they would conduct audits but the results are yet to be revealed.
In March 2021, Moore Clayman, an audit firm, released a statement revealing that Tether and its group companies have more assets than the required amount needed to issue the tokens. The data of its reserves weren’t revealed then but that changed after the company issued the data in May, revealing the asset reserves they have to back up their issued currency.
Tether has by far the highest market capitalization (approx. $62 billion) compared to other stablecoins.
