Tether Undergoes Financial Review by Leading Accounting Giants
Betting her chips on increased transparency, Tether, the issuer of the world’s largest stablecoin USDT, is negotiating with a major accounting firm from the Big Four – PwC, EY, Deloitte, or KPMG – to conduct an independent audit of its reserves.
According to Reuters, CEO Paolo Ardoino confirmed the company is in discussions but didn’t specify which firm or when the audit might take place.
Tether goes Big Four to enhance transparency
The call for more transparency comes amidst a positive U.S. regulatory environment, especially under President Trump. Ardoino mentioned the current admin's stance has made a full audit "feasible," contrasting it with the past administration's hostile attitude often referred to as 'Operation Chokepoint 2.0.'
Tether, now headquartered in El Salvador, has long promised a complete audit of the reserves backing its dollar-pegged token. While the company issues quarterly attestation reports, critics and regulators have urged for more rigorous, independent verification. An audit from a Big Four accounting firm could mark a significant stride in addressing transparency concerns.
The company’s flagship product, USDT, operates across multiple blockchain networks, including Ethereum, Solana, and Tron, and is set to expand to the Bitcoin network soon. USDT is the most traded cryptocurrency worldwide and ranks third in market capitalization behind only Bitcoin and Ethereum.
Since its launch in 2014, Tether has faced questions regarding the composition and management of its reserves. The company maintains every USDT token is backed 1:1 by U.S. dollar-denominated assets, including Treasuries, and claims to have issued over $143 billion worth of stablecoins.
Fresh faces and renewed partnerships
Tether’s pursuit of a Big Four audit coincides with broader discussions in Washington regarding establishing federal legislation on stablecoins. President Trump has urged Congress to pass a regulatory bill. Industry participants, including Tether, view this as a potential catalyst for legitimizing and strengthening stablecoin operations within the country.
Despite market dominance, Tether's past controversies still linger. In 2021, the firm agreed to cease operations in New York following a state attorney general investigation that found the company had made misleading claims about its reserves.
The company has since taken steps to restore trust, including appointing Simon McWilliams as its new Chief Financial Officer. McWilliams is tasked with driving the charge toward achieving a financial audit.
Additionally, Tether partners with Cantor Fitzgerald, a firm led by newly appointed U.S. Commerce Secretary Howard Lutnick, that currently custodies a significant portion of the assets backing USDT.
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- Tether, aiming to increase transparency, is negotiating with a major accounting firm from the Big Four - PwC, EY, Deloitte, or KPMG - to conduct an independent audit of its reserves.
- The audit, if successful, could be a significant stride in addressing transparency concerns surrounding Tether's reserves and operations.
- The call for more transparency comes amidst a positive U.S. regulatory environment, especially under President Trump, who has urged Congress to pass a regulatory bill for stablecoins.
- Tether's flagship product, USDT, is the most traded cryptocurrency worldwide and ranks third in market capitalization behind only Bitcoin and Ethereum.
- Amid broader discussions in Washington regarding establishing federal legislation on stablecoins, Tether is partnering with Cantor Fitzgerald, a firm led by newly appointed U.S. Commerce Secretary Howard Lutnick, to custodies a significant portion of the assets backing USDT.
- In the world of crypto trading, speculations about potential shifts in U.S. crypto regulation and partnerships between exchanges and financial giants continue to shape the business landscape, influenced by the intersection of technology and finance.
