Tether, the issuer of the biggest stablecoin, has signed on a Big Four accounting firm to complete its first independent audit after years of scrutiny.
Tether Signs Big Four Firm To Provide Assurance That USDT Is Fully Backed
According to a website announcement, Tether has entered a formal engagement with a Big Four audit firm for what the stablecoin issuer describes as the biggest inaugural audit of all time in financial markets. “This audit represents years of work to strengthen our systems so that Tether can meet the highest standards applied in global finance,” noted Paolo Ardoino, Tether CEO.
Tether is a cryptocurrency company that’s most popularly known for being the issuer of the stablecoin USDT. The firm’s token is the largest stablecoin in the sector by market cap and ranks third overall behind Bitcoin and Ethereum.
Over the years, Tether has faced criticism over the lack of transparency and how its stablecoin is backed. Back in 2021, the United States Commodity Futures Trading Commission (CFTC) fined the firm $41 million for falsely claiming that USDT was fully backed by US dollar reserves.
Now, with the audit, it seems the company wants to upgrade on this front. “For the hundreds of millions of people and businesses who rely on USD₮ every day, this audit is not just a compliance exercise; it is about accountability, resilience, and confidence in the infrastructure they depend on,” said Ardoino.
As for who the company that’s going to audit Tether is, the exact name is currently unknown. The announcement has just noted that it’s a Big Four firm, which means that it’s one of KPMG, EY, Deloitte, or PwC. Simon McWilliams, Tether Chief Financial Officer, noted:
The Big Four Firm was selected through a competitive process because the organisation is already operating at Big Four audit standard; the audit will be delivered.
Earlier this year, Tether launched a new stablecoin called USAT, specifically aimed at the US market. The company had previously stepped away from the nation following regulatory scrutiny. The new token, backed by dollars, complies fully with the country’s newly established stablecoin framework following the passage of the GENIUS Act last year.
As mentioned earlier, USDT is the largest stablecoin in the sector. Its market cap of $184 billion alone accounts for nearly 60% of the total stablecoin market cap. Meanwhile, the closest competitor, USDC, has a market cap of $78 billion.
Overall, the stablecoin sector has done relatively well during the last few months despite a bearish shift in the wider digital assets market, with its combined market cap currently sitting around an all-time high (ATH), according to data from DefiLlama.
Looks like the value of the metric has been moving sideways in recent months | Source: DefiLlama
Bitcoin Price
Bitcoin recovered above $71,000 earlier in the day, but the coin has seen another setback as its price has now returned to $69,300.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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