The largest and most popular Stablecoin in the world, Tether, is finally going to have its account audited after several years of waiting. This was revealed by the counsel to the crypto project in a recent interview with CNBC.
During the interview, the counsel, Stu Hoegner, alongside the CTO to the firm, Paolo Ardoino, stated that the Stablecoin firm was working towards a financial audit. In the words of Hoegner, “we are working towards getting financial audits, which no one else in the stablecoin sector has done yet.”
The counsel went on to highlight how the audit would make Tether the first in the Stablecoin sector. He also went on to mention that the said audit should be expected in “months, not years.”
Tether has a market cap of $62 billion. This makes the digital asset one of the largest in the market, only behind the likes of Bitcoin and Ethereum. Since the beginning of the year, its market cap has grown by 195 percent, an impressive number in the overall crypto space. However, when its percentage in growth is compared to other stablecoins like USDC and BUSD, it lags.
Hoegner’s statement also showed that USDT is backed one-to-one with its reserves. However, when questioned if all of these reserves were in USD, he admitted that the reserves were also in cash equivalents, bonds, secured loans, crypto assets, and other investments.
It would be recalled that Tether has faced some levels of regulatory scrutiny who have questioned its reserve make up. Just recently, another Stablecoin firm, Paxos, claimed that USDT was “not comprehensively overseen by any financial regulators.”
Paxos had written that
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.