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The audit seeks to resolve ongoing concerns regarding USDT reserves and promote new standards for disclosure.
Tether CEO Paolo Ardoino (Nikhilesh De/CoinDesk)
Key Points:
- Tether has engaged a Big Four accounting firm to perform its inaugural comprehensive financial statement audit of the reserves that support its $184 billion USDT stablecoin.
- The organization, which has previously shared only regular attestations, indicated that the audit will encompass a thorough examination of its assets, liabilities, controls, and reporting mechanisms.
- Tether did not disclose the name of the firm but mentioned it was selected through a competitive process, in light of ongoing criticism and scrutiny regarding whether USDT is entirely backed one-to-one by liquid reserves.
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Tether, the company behind the widely-used stablecoin USDT, announced on Tuesday that it has chosen a “Big Four” auditing firm to carry out its first complete financial statement audit.
"The Big Four Firm was chosen through a competitive selection process due to the firm already functioning at the standards expected of a Big Four audit," stated Simon McWilliams, Chief Financial Officer of Tether. "The audit will be conducted as planned."
The company has traditionally provided periodic attestations regarding the assets backing its $184 billion U.S. dollar stablecoin USDT. A full audit represents a more extensive process: it necessitates a meticulous review of assets, liabilities, controls, and reporting systems.
Tether has not revealed the firm that will perform the audit. The term Big Four refers to leading accounting firms Deloitte, EY, KPMG, and PwC.
This decision comes after years of criticism concerning Tether’s ability to fully prove that USDT is completely supported by reserves. The company asserts that its holdings primarily consist of U.S. Treasury bills, alongside smaller portions allocated to gold, bitcoin, and various loans. This asset mix has attracted scrutiny from critics who question the liquidity and risk associated with certain assets, particularly during times of market turbulence.
