Tether Is Cooking Up a Big Audit with a Top Gun Accounting Firm
Tether Undergoes External Audit by Major Accounting Firms from the Big Four
Looks like Tether, the company behind the world's largest stablecoin, USDT, is about to bring some serious transparency to the table. According to the tea spilled by Reuters, Tether is in talks with one of the Big Four accounting juggernauts - PwC, EY, Deloitte, or KPMG - to conduct an independent audit of its reserves.
Tether's CEO, Paolo Ardoino, has confirmed the company is "engaging" with one these global professional service giants, but he didn't drop a specific bomb on which firm or when the audit might happen.
Get Ready for a Clearer Picture of Tether's Reserves
The push for a full audit comes at a time when the U.S. crypto regulatory landscape is looking less like a minefield and more like a well-manicured park, particularly under President Donald Trump. Ardoino suggests that recent shifts in policy have made a thorough audit a viable option, unlike the partial hostility that his team has faced under the previous administration, often referred to in the industry as "Operation Chokepoint 2.0."
Tether, now headquartered in El Salvador, has always maintained it would undergo a comprehensive audit of its reserves, but critics and regulators have called for tougher measures than the quarterly attestation reports it currently provides. An audit by a Big Four accounting firm would be a significant step towards addressing these transparency concerns.
USDT does business across several blockchain networks, including Ethereum, Solana, Tron, and soon, Bitcoin. It's the most traded cryptocurrency in the world and ranks third in market capitalization, only behind Bitcoin and Ethereum.
Since its launch in 2014, Tether's reserves have been under the microscope. The company maintains that every USDT token is backed 1:1 by U.S. dollar-denominated assets, including Treasuries, and claims to have churned out a staggering $143 billion worth of stablecoins.
Washington's Moving the Pieces for Stablecoin Regulation
These discussions about an independent audit also coincide with broader discussions happening in Washington, D.C. As the U.S. gets closer to establishing federal legislation on stablecoins, President Trump is urging Congress to pass a regulatory bill. If things go according to plan, this could be the catalyst for legitimizing and strengthening stablecoin operations within the country.
Tether's market dominance is huge, but its past controversies continue to linger. In 2021, the company agreed to cease operations in New York following a state attorney general investigation that concluded the company had made misleading claims about its reserves.
To rebuild trust, Tether has taken some steps, including appointing Simon McWilliams as its new chief financial officer. His challenge? Leading the charge towards achieving a full financial audit.
Adding more credibility to its reserve management, Tether has partnered with Cantor Fitzgerald, a firm led by newly appointed U.S. Commerce Secretary Howard Lutnick, which currently custodies a significant portion of the assets backing USDT.
Stay tuned for updates on Tether's audit, federal legislation on stablecoins, and more cryptocurrency news.
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- The upcoming audit of Tether's reserves by a Big Four accounting firm such as KPMG, Deloitte, EY, or PwC could bring significant transparency to crypto trading, addressing longstanding concerns about Tether's financial reserves.
- As Tether's new CFO, Simon McWilliams faces the challenge of leading the company towards achieving a full financial audit, a move that would boost investor confidence in the cryptocurrency industry and technology.
- In the realm of business and finance, Tether's push for a comprehensive audit coincides with ongoing discussions in Washington, D.C., concerning federal legislation on stablecoins, potentially paving the way for greater regulation and legitimization of cryptocurrency operations.
- The news of Tether's audit and the development of stablecoin regulation adds fuel to the ongoing buzz surrounding crypto news, a critical aspect of the crypto trading and technology-driven business ecosystem.
