• Tether defends USDT reserves and plans a full audit

  • Tether’s CTO Paolo Ardoino stated on Monday that the cryptocurrency Tether (USDT) had survived short selling and redemptions during the crypto market crisis. Furthermore, Paolo Ardoino argues that Tether has always been more open about its reserves. MHA, an accounting company, validates Tether reserves periodically.

    In reality, Tether intends to conduct a complete audit of its reserves. However, because to the lack of regulatory regulations around stablecoins, the Big Four accounting companies remain inaccessible.

    Tether (USDT) Reserves Will Be Fully Audited, According to CTO

    Tether has released information regarding its reserves for the last two years, and it will provide more if regulators need it, according to Paolo Ardoino in an interview.

    “We wish that regulators would provide clarity on what is owed to be disclosed. If we disclose a [hypothetical] 10, it’s unfair that other stablecoins disclose a five.”

    Tether’s CTO, Paolo Ardoino, claims that public revelation of reserve details harms relationships with partners and banks. It is unethical to reveal information about banks and counterparties.

    Currently, accounting firm MHA offers quarterly reserve attestations. A top 12 accounting firm has been contracted to conduct a complete audit of the reserves. However, according to some reports, the corporation is being investigated by the UK Financial Reporting Council.

    According to Paolo Ardoino, Tether (USDT) is largely backed by fiat reserves, with only a small amount in digital assets. Tether has also cut its commercial paper holdings. In fact, because the corporation has never redeemed its dividend, the accumulated interest continues to build to its reserves.

    “Tether redeemed 10% of its assets in 48 hours and, we could have done much more than that. In total, in 10 days, it was around $11 billion or 13% of our assets and still no problems.”

    Tether’s (USDT) market capitalization falls below $70 billion.

    Rising redemptions during the depeg caused the USDT market cap to go below 70 billion. The USDT now has a market value of $67.84 billion, according to CoinMarketCap.

    Meanwhile, the market cap of USDC stablecoin continues to rise since it appears more stable than USDT, which has depegged over the last two crypto market downturns.

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