Tether Moves to Boost Transparency with Full Audit Amid Growing Concerns

Tether, the issuer behind the popular USDT stablecoin, is reportedly in talks with a top accounting firm to initiate a comprehensive audit of its asset reserves to confirm the 1:1 backing of its tokens.

This move follows increasing concerns about the company’s lack of third-party audits, which had previously raised questions about the potential for a liquidity crisis similar to the collapse of FTX.

Paolo Ardoino, Tether’s CEO, expressed confidence in the audit process, stating that under a pro-crypto administration, such as that of Donald Trump, major accounting firms would be more likely to collaborate with Tether. He emphasized that the audit is a priority for the company. While Tether has previously been subject to quarterly reports, it has never undergone a full independent annual audit, which would offer greater assurance to both regulators and investors.

Although Ardoino did not disclose which of the Big Four firms—PwC, EY, Deloitte, or KPMG—would be chosen for the audit, the company’s efforts come as it seeks to increase transparency. Tether’s USDT has long maintained a claim of being fully backed by reserves that match its circulating supply, comprising traditional currencies and cash equivalents. This has been an ongoing point of contention, with critics like Justin Bons, founder of Cyber Capital, warning that Tether’s lack of proof for its $118 billion in collateral poses a significant risk to the crypto ecosystem.

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In preparation for this full audit, Tether appointed Simon McWilliams as chief financial officer earlier this year. However, scrutiny around the stablecoin has continued to grow, especially after Tether faced a $41 million fine in 2021 for misleading regulators about the true nature of its reserves. More recently, the company has expressed frustration over new European regulations that have caused exchanges like Crypto.com to remove USDT from their platforms.

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Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.