The founding firm of USDT stablecoins, Tether, is set to release its attestation report every month. However, this responsibility will be done together with the Italian arm of the fifth largest accounting firm in the world, BDO Italia. MHA Cayman, a Caymanian auditing firm, was previously responsible for this operation in March, June and December 2021, and May 2022.
Attestation and assurance reports are documents released by Stablecoin issuers briefing the market on the assets backing their products – stablecoins. This provides trust and good information for decision-making.
The practice of releasing reports started in Q1 2021 after a dissatisfying claim by the Attorney General’s Office in New York that the stablecoin wasn’t fully backed. Bloomberg is also reported to have produced a story about the weakness of Tether.
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Assets, liabilities, and the evolution of Tether
The latest report released on 19 August 2022 showed that Tether’s total assets of $66.4 billion are above its total liabilities of $66.2 billion, as of June 30. An increase of 32% was made on its cash deposit while decreasing its commercial paper holdings by more than 58%.
According to a press release by Tether, this reporting system will enhance transparency between the stablecoin giant and its users while issuing updates on “issued tokens, and reserves on a daily basis”. This will be followed by the monthly release which was earlier pledged by the leaders of the company.
Tether, which started as a stablecoin project, is being repurposed to serve an evolving market. Paolo Ardoino, the company’s Chief Technical Officer expressed this stating that it is vital that Tether scales “alongside the peer-to-peer and payment markets”. It can no longer be used for just trading purposes.
