Tether reserve attestations to be conducted by major European accounting firm

0
19

In a step towards greater transparency and better compatibility with international accounting standards, stalcoin operator Tether Holdings Limited has tapped BDO Italy to conduct regular reviews and certifications of its dollar reserves.

Tether, which operates the USDT stablecoin, officially began working with BDO Italia in July, the company revealed on Thursday. BDO Italy will be responsible for conducting an independent audit of Tether’s stablecoin reserves to ensure that each unit of USDT is backed by cash or cash equivalents. Through BDO’s reviews, Tether plans to release public certification reports monthly instead of quarterly. The certificates will include updates on the number of USDT tokens issued, as well as the company’s reserves.

BDO Italia is the Italian arm of BDO Global, an international network of public accounting firms, which maintains its headquarters in Zaventem, Belgium. BDO Global ranks among Europe’s five largest accounting firms by total revenue. The company maintains offices throughout North and South America, Europe, the Middle East and North Africa, and the Asia-Pacific region.

Paolo Ardoino, Tether’s chief technologist, said his company’s promise to offer more transparency reflects its growing mandate beyond just offering liquidity to crypto traders:

“Tether’s utility has grown beyond just being a tool to quickly move in and out of trading positions, and that’s why it’s mission-critical for us to scale alongside the peer-to-peer and payment markets.”

Tether began publishing quarterly certificates of its stablecoin reserves in May 2021 as part of a settlement with the New York Attorney General’s Office in February of the same year. Tether previously passed several assurance tests conducted by local accounting agency Moore Cayman that its reserves exceeded liabilities.

Tether’s initial certifications showed that a significant portion of its reserves were backed by commercial paper. The company later announced plans to reduce its commercial paper exposure to zero. It was estimated that, by the end of July, Tether’s trading paper would be worth about $3.5 billion, down from $20.1 billion in March.

Related: Tether also confirms its pitch weight behind the post-Merge Ethereum

USDT remains the largest stalcoin by market capitalization at $67.6 billion, according to CoinMarketCap. After a three-month low, the supply of USDT started gradually in August, providing cautious optimism that the cryptocurrency market is turning a corner.