Tether Announces New Deal For Auditing: Good Or Bad For Crypto?

After much discussion about its plans to disclosing information about Tether’s reserves, the team has on Thursday revealed new plans. In a shift in assurance and attestation process, the company announced it is working with a top public accounting firm. The company will now bring out monthly reports on financial reserves behind the stablecoin. Stressing on providing transparency and accountability, the company is moving on from the quarterly reporting process.

Describing the new partnership as a significant update to its auditing process, Tether said the move aligns with future plans. Going forward, the company behind the top stablecoin will shift to a complete audit process.

Earlier this year, the company management said it holds fiat backed reserves to a large extent. Only a small proportion of Tether’s holdings are in digital assets, it said.

Tether Working With BDO Italia For Auditing

In an announcement, the company said it officially began working with BDO Italia. The firm, Tether said, has great credentials in global independent public accounting for quarterly attestations. The new accounting process involves providing updates about issued tokens and reserves on a daily basis. In addition to this, the company would also provide monthly assurance opinions, it said.

“Tether is committed to not only lead in innovative technology, but also in transparency and accountability to its customers who use stablecoins to make tens of billions of dollars in trades every day. This new relationship aligns with Tether’s dedication to transparency and is the next step in the company’s path toward a complete audit.”

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Responsibility As Market Leader

Paolo Ardoino, CTO of Tether, said Tether’s new plan leans towards educating the community about stablecoin technology. It aligns with Tether’s responsibility as a market leader to educate the world, he said. “We are committed to serving the fast-growing cryptocurrency market as the strongest stable asset in the Web3 economy. Tether’s commitment to transparency is not something new.”

The decision to work with the BDO organization represents its promise to deliver considerable transparency for those holding Tether tokens, the company said.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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