Tether has declared that it will hire a “Big Four” accounting firm to perform its first comprehensive financial audit of USDT reserves.
Simon McWilliams, the company’s CFO, confirmed that the firm was chosen following a competitive selection process. Tether hasn’t yet said which of the Big Four firms, namely, Deloitte, EY, KPMG and PwC, was selected.
Tether has only released sporadic attestations of its reserves thus far. A thorough examination of assets, liabilities, financial controls and reporting systems is part of a more comprehensive audit.
The market value of USDT, the biggest stablecoin in the world, is approximately $184 billion. Tether has long been criticised over the transparency and quality of its reserves, despite its widespread use.
According to the company, U.S. Treasury bills make up the majority of its reserves, with minor amounts stored in gold, Bitcoin and loans. However, some of these assets’ risk and liquidity have been subjects of criticism, particularly in times of market turbulence.
A thorough audit might greatly boost confidence in Tether and the larger stablecoin sector, particularly considering the growing global regulatory scrutiny.
Source: Trading View
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