Tether is moving towards a full audit of reserves. The stablecoin issuer is working with one of the Big Four accounting firms for verification of its reserves. The company has been subject for a long time to calls for greater transparency. CEO Paolo Ardoino described how a full audit is now possible with U.S. President Donald Trump.
Its reserves are currently reviewed quarterly. More detailed financial information would be provided through a full audit. It has not announced which accounting firm is being hired. It also didn’t specify when the audit will happen. Something that many players in the crypto sector have asked for over several years. It would help solidify faith in stablecoins and digital currencies.
Regulatory shift fuels Tether’s audit prospects
Trump’s crypto policy has eased regulatory tension. Ardoino explained that previous U.S. policy suppressed crypto businesses. He believes that the new administration will support the auditing process. Trump’s latest executive order on cryptocurrency constitutes a policy shift.
They have been welcoming towards digital assets. The action may inspire other firms to ask for audits. Tether has released over $140 billion worth of stablecoins. It claims to back all tokens with dollar-denominated reserves.
The company has been promising for years to do an audit but has not. Its reserves are still being queried by investors and regulators. Greater transparency would raise confidence in USDT. Numerous crypto traders use stablecoins for stability and liquidity.
Earlier this month, Tether appointed Simon McWilliams as its chief financial officer. His responsibility will be managing financial transparency initiatives. McWilliams has a great deal of experience with financial audits. The company also continues to consolidate its financial holdings.
Tether’s growing influence in financial markets
Greater reserves and audits that are successful can increase credibility. Could you clarify what you mean by “V”? It looks like your message was cut off. Let me know what sentence you want in active voice! Tether remains a major owner of U.S. government debt. It bought over $33.1 billion worth of U.S. Treasury bills throughout 2024.
It held more than $94 billion worth as of Dec. 31. Most are with Wall Street broker Cantor Fitzgerald. Former CEO Howard Lutnick is Trump’s commerce secretary. The role that Tether plays in financial markets continues to expand. Its US debt holdings indicate its scope beyond crypto.
Stablecoins are a necessity for crypto transactions. They introduce stability and liquidity into markets that are volatile. The audit on Tether will be a turning point in gaining confidence in the industry. The crypto community will watch with interest as events unfold. If completed, the audit will potentially mark a watershed for stablecoins.
