- Tether is in discussions with one of the Big Four accounting firms to conduct an independent audit of its stablecoin reserves.
- The stablecoin issuer has previously faced regulatory scrutiny over transparency concerns regarding what backs USDT.
- Tether’s USDT is the most traded cryptocurrency and will soon be available on Bitcoin‘s network in addition to existing blockchains like Ethereum, Solana, and Tron.
Tether is seeking to enhance its credibility through independent verification, according to reports that emerged Friday. The stablecoin giant is currently in discussions with one of the Big Four accounting firms to conduct a comprehensive audit of its reserves, CEO Paolo Ardoino confirmed to Reuters in a recent report.
The El salvador-based company has historically struggled to secure top-tier accounting services to independently verify the assets backing its widely used USDT stablecoin. The Big Four accounting firms—PwC, EY, Deloitte, and KPMG—represent the Gold standard in financial auditing, and securing one would mark a significant milestone for Tether.
USDT currently ranks as the third-largest cryptocurrency by market capitalization according to data from CoinGecko, and remains the most actively traded digital asset in the entire cryptocurrency ecosystem. The stablecoin operates across multiple blockchain networks, including Ethereum, Solana, and Tron, with plans to expand to Bitcoin’s network in the near future.
Stablecoins like USDT serve a critical function in the cryptocurrency marketplace, providing traders with a fast way to enter and exit other crypto positions without needing to process transactions through traditional banking systems. Tether claims its USDT tokens are backed by U.S. Treasury securities and other reserve assets.
Regulatory scrutiny has shadowed Tether for years, with authorities criticizing Tether for insufficient transparency regarding its reserve holdings. This criticism culminated in a significant settlement in 2021, when Tether agreed to cease operations in New York following a two-year investigation by the state attorney general. The investigation concluded that Tether had “made false statements about the backing” of its stablecoin.
Currently, Cantor Fitzgerald, the firm led by new Commerce Secretary Howard Lutnick, serves as custodian for billions of dollars in assets that back Tether’s stablecoin. An independent audit by a Big Four firm would potentially address persistent questions about Tether’s reserves and improve its standing with regulators and investors alike.
The stablecoin issuer did not respond to requests for additional comment on the audit discussions.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- SEC Finally Opens Door to Crypto Industry Collaboration on Regulations
- Coinbase in Advanced Talks to Acquire Crypto Derivatives Giant Deribit
- Nigeria Remains Open to Crypto Firms Despite $80bn Binance Lawsuit
- US Delists Crypto Mixer Tornado Cash From Sanctions After Court Ruling
- Crypto Market Dips to ‘Fear’ Territory Following Post-FOMC Rally
