Tether hired an accounting firm from the Big Four to conduct its first full audit of the financial statements of the reserves backing its stablecoin USDT worth 184 billion dollars.
The company, which previously published only periodic attestations, stated that the audit would include a detailed review of its assets, liabilities, control systems, and reporting.
Tether did not name the firm, but stated that it was chosen on a competitive basis against the backdrop of longstanding criticism and scrutiny regarding whether USDT is fully backed by liquid reserves on a one-to-one basis.
Tether, the crypto company behind the most popular stablecoin USDT, announced on Tuesday that it has selected an auditing firm from the "Big Four" to conduct its first full audit of financial statements.
The "Big Four" firm was chosen on a competitive basis, as the organization already operates under the auditing standards of the "Big Four," said Simon McWilliams, CFO of Tether. "The audit will be conducted."
The company has long published periodic attestations of assets confirming the value of its stablecoin USDT worth $184 billion. A full audit entails even more: it requires a detailed review of assets, liabilities, control measures, and reporting systems.
Tether did not name the firm that will conduct the audit. The term "Big Four" is used to refer to the leading accounting firms Deloitte, EY, KPMG, and PwC.
This move came after years of criticism regarding whether Tether has fully demonstrated that USDT is completely backed by reserves. The company claims that its assets primarily consist of U.S. Treasury bonds, as well as smaller allocations to gold, Bitcoin, and a range of loans. This combination has drawn the attention of critics who question the liquidity and risk profile of some assets, especially during periods of market strain.
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