The issuer of the most popular stablecoin promises to publish a detailed audit of the reserves and collateral of the coin
Tether, the issuer of the third cryptocurrency in terms of market capitalization, has been promising to publish an audit for many years confirming that the coin is backed by monetary assets.
Perhaps, the document will appear soon. According to Stu Hegner, general counsel for Tether, the audit is in progress and the result will be published within a few months.
“We are working on a financial audit. No one has ever done this among the issuers of stablecoins, ”Hegner said in an interview with CNBC.
What is USDT
Tether is a stablecoin pegged to the US dollar at a 1: 1 ratio. This peg makes its value less volatile and similar to traditional currencies.
Tether Inc, the company that issued the stablecoin, claims that all coins are 80% backed by US dollars and 20% by cash equivalents.
Hegner confirmed in an interview that USDT is 100% backed by reserves, but this includes not only the dollar, but also bonds, secured loans, crypto assets and other investment vehicles. Read about why Tether is buying up short-term bills in our special material.
USDT is a systemically significant coin for cryptoeconomics. Over the past day, the volume of transactions with stablecoin exceeded $ 55 billion. For comparison, transactions with bitcoin amount to $ 26 billion. In many regions, including Asia, USDT serves as a bridge through which users get from the traditional system to bitcoin.
“Our average daily trading volume on exchanges has recently been $ 45-50 billion, which is significantly higher than that of our competitors,” he said. The data speaks for itself. The market has proven its trust in Tether and our products. “
The only problem is that not everyone believes in stories about providing real dollars. In 2018, University of Texas professor John Griffin published a study in which he described how the market manipulates the value of Bitcoin using Tether.
In addition, the New York prosecutor’s office has accused the issuer of the stablecoin of fraud. The authorities are confident that Tether does not support the provision of reserves for its coin.
Here we are going to talk in detail about what the American regulators and Tether did not share.
An audit will fix everything
An audit could clarify the matter, but Tether has been slow to disclose the data to regulators. In March of this year, Tether published a breakdown of reserves, but the community was skeptical about such an audit. The company’s management claims that it does not engage in any cryptocurrency fraud.
“We are leaders in transparency,” said Hegner. “We don’t just follow the rules, we help formulate them, we help regulators and law enforcement agencies around the world.”
According to Hegner, this long-awaited audit will confirm his words … if, of course, it is published.
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