The USDT stablecoin collateral is confirmed by BDO
The USDT stablecoin collateral was audited and met the requirements of the community and regulators. This was confirmed by independent accounting firm BDO, which will now provide Tether Holdings with its audit services.
The USDT stablecoin collateral
One of the largest auditors, BDO, has confirmed the USDT stablecoin collateral and reported the sufficiency of Tether Holdings’ reserves. The financial analysis was part of an agreement between accounting firm BDO and Tether. Now reports on the state of reserves of the popular stablecoin will be issued monthly instead of quarterly.
As of June 30, the cryptocurrency issuer’s commercial paper reserves decreased by 58% compared to the previous quarter and amounted to $8.5 billion against $20 billion. This meets the requirements of the Tether community. As noted earlier, the percentage of commercial paper will fall to 200 million at the end of August this year, and the figure should drop to zero at the end of the year. The company’s cash holdings and bank deposits increased by 32%.
As the audit shows, Tether continues to reduce investments in short-term debts. Consolidated assets exceed the company’s liabilities. They amounted to $66.4 billion, while liabilities reached $66.2 billion. Funds related to tokens but not in treasury totaled $226,158,744. The reporting also shows that the commercial paper rating has risen. It is between A-1 and A-2.
We want to maintain a leading position in the stablecoin market, so Tether collateral will be more transparent to provide an effective tool for macroeconomic needs. We are demonstrating a commitment to the community by aligning with independent auditor BDO. Our plans include setting market standards to which our competitors and future stablecoins can look for guidance.
reports Tether CTO Paolo Ardoino.
The transition to monthly reporting is expected to increase investors’ confidence and simplify interactions with regulators, as Tether’s reserves were previously questionable.
These innovations are due to regulators’ preparations to implement stricter measures regarding stablecoin. The legislative authorities in the U.S., UK, Japan, and other states will require Tether and similar companies to provide detailed and frequent reports on reserves, refusal of commercial paper, and licenses from non-banking organizations.
What is Tether?
Tether (USDT) is a popular stablecoin, pegged to the value of the U.S. dollar and backed by cash reserves. Stablecoin is issued by Tether Holdings. Its progenitor, Mastercoin, eventually renamed Omni Layer Protocol, appeared in 2012 as a bitcoin-based coin. In 2014, Omni Layer was used to issue the Realcoin token, which became Tether through rebranding.
The stablecoin has analogs that are backed by the euro and the yen. In June, the company announced the release of stablecoin, tied to the pound sterling price.
Note that Tether was fined $18.5 million in 2021 after an investigation by the Attorney General’s Office in New York. It turned out that the statement that the dollar fully backed the token was not true.
What is BDO?
BDO is an international company that provides accounting, tax, and advisory services. It performs audits, business restructuring, corporate finance, forensic accounting, and investment management. At the end of last year, the total comprehensive income of BDO from commissions amounted to more than 11 billion dollars, having increased by almost 11% in annual terms. The issuer has offices in 164 countries.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
