Home News Tether promises an audit as Paxos claims USDT is not a real...

Tether promises an audit as Paxos claims USDT is not a real stablecoin

557
0

Tether, the operator of the world’s largest stablecoin USDT, plans to conduct a financial audit of the token collateral in the coming months.

Tether, like other stablecoin companies, often criticized for its lack of audits. For several years, the company didn’t even disclose where the fiat currencies stored. Let alone the details of the USDT collateral. It seems that regulatory pressure has forced Tether to not only provide data on the assets that provide the token issuance, but also to conduct a financial audit.

During an interview on CNBC, Tether CTO Paolo Ardoino and chief attorney Stu Hoegner spoke about an upcoming audit that will confirm the assets.

“We are working towards getting financial audits, which no one else in the stablecoin sector has done yet ”, Hoegner said.

He stressed that Tether backed by assets in a 1: 1 ratio. That is, USDT 100% backed by reserves, but they include not only the US dollar. Bonds, safe loans, cryptocurrencies and other investment instruments also used.

At the moment, the capitalization of USDT reaches $ 62 billion. The indicator has grown by 195% since the beginning of the year. At the same time, the growth rates of competing USDC and BUSD tokens are even higher.

Paxos doubts the stability of Tether

In response to Tether’s statements, rival company Paxos expressed its own opinion:

“Neither USDC nor Tether is a regulated digital asset, for the simple reason that neither token has a regulator. In fact, neither USDC nor Tether tokens are ‘stablecoins’ in anything other than name”. Thus, not everyone believes in stories about providing real dollars.

However, representatives of the Tether project insist that according to the results of the audit, users will have no doubt that USDT coins are stable and fully secured assets.

This statement from Tether came precisely after the Paxos cryptocurrency exchange publicly doubted the stability of the most used stablecoin.

Recently, US Federal Reserve (FRS) Chairman Jerome Powell said stablecoins should regulated like bank deposits and mutual funds.

Conclusion

Tether, the issuer of the third cryptocurrency in terms of market capitalization, has been promising to publish an audit for many years confirming that the coin is backed by monetary assets.

Perhaps the document will appear soon. According to Stu Hoegner, general counsel for Tether, the audit is in progress and the result will be published within a few months.

In March of this year, Tether published a breakdown of reserves, but the community was skeptical about such an audit.

University of Texas professor John Griffin published a study in which he described how the market manipulates the value of Bitcoin using Tether.

In addition, the New York prosecutor’s office has accused the issuer of the stablecoin of fraud. The authorities are confident that it does not support the provision of reserves for its coin.

However, the company’s management claims that it is not engaged in any cryptocurrency fraud.

An audit could clear this up, but Tether has been slow to disclose the data to regulators.

Previous articleElon Musk says Bitcoin has already hit its renewable energy benchmark
Next articleVitalik Buterin’s surprise in Ashton Kutcher and Mila Kunis’ living room