Tether, the issuer of the USDT stablecoin, is presently in discussion with a leading Big Four accounting firm to conduct a comprehensive audit of its asset reserves. The aim of the audit is to authenticate that every USDT token is backed by the equivalent value in reserves on a 1:1 ratio, as claimed by the company.
CEO of Tether, Paolo Ardoino reportedly stated that the auditing process will be smoother in the pro-crypto environment fostered by US President Donald Trump. This follows increasing apprehension within the industry that Tether might face a liquidity crisis similar to FTX, due to the absence of third-party audits.
Ardoino expressed optimism about the upcoming audit, expressing to Reuters on March 21, “If the President of the United States says this is top priority for the US, Big Four auditing firms will have to listen, so we are very happy with that.”
Despite not specifying which of the Big Four firms – PwC, EY, Deloitte, or KPMG – Tether plans to engage, Ardoino emphasized that the audit was of paramount importance to the company. Tether, which currently releases quarterly reports but not a comprehensive annual audit, is making strides towards offering greater assurance to investors and regulators.
The company recently appointed Simon McWilliams as its Chief Financial Officer, a move seen as a preparatory step towards the impending financial audit. Tether’s USDT stablecoin maintains stability by claiming it’s pegged to the US dollar at a 1:1 ratio, backed by reserves that include traditional currency, cash equivalents, and other assets.
However, Tether’s lack of transparency has been a cause for concern in the industry. In 2024, founder of Cyber Capital, Justin Bons, referred to Tether as one of the significant threats to crypto due to the unverified claims of holding $118B in collateral. Similarly, a report by Consumers’ Research criticized Tether for its opaqueness.
In 2021, Tether was fined a $41 million civil monetary penalty by the United States Commodities and Futures Trading Commission (CFTC) for misrepresenting that USDT was fully backed by reserves.
Recently, Tether expressed dissatisfaction over new European regulations that compelled exchanges like Crypto.com to delist USDT and nine other tokens to comply with MiCA. A spokesperson for Tether voiced concerns over the “rushed actions” and their unclear basis.
At the time of writing, Tether has yet to respond to Cointelegraph’s request for a comment.
