- Paolo Ardoino, DL News Tether’s CEO, told DL News that Tether would like to be audited and certified by the best global accounting firms.
- He explained that the issuer relies still on “attestations” for its reserve.
- Tether is a key player in the cryptocurrency market because of its utility.
Since Tether became the dominant stablecoin, it has faced a major question: Why doesn’t Tether produce audits on its reserves?
Paolo Ardoino, CEO of Ardoino Group has now provided a response.
Interview with DL NewsHe said that the Big Four Accounting firms — Deloitte PwC EY and KPMG – are afraid of working with Tether, for fear their reputations will be damaged.
Ardoino stated that “none of the Big Four Companies will audit us.” He said that appointing one of the Big Four companies as Tether’s auditor was a “top priorty.”
USDT utility
Investors’ constant concerns about USDT, which is the top stablecoin in the world with the largest market cap would be eased by an audit from one of these global firms. $108 billion market value.
The crypto-market is not complete without Tether. The Tether allows users to switch between fiat currency and digital assets.
USDT, the currency most commonly traded against Bitcoin, Ethereum and Solana, is available on all major crypto exchanges.
This means that when investors buy and sell digital assets in dollars they usually do it using Tether’s USDT.
It is important that Tether shows it can back USDT with cash every quarter.
It hasn’t always been an easy decision to become a client of one of these top accounting firms, between the FTX catastrophe and all the hacks and heists and regulations crackdowns on crypto.
Why take the risk?
Ardoino replied: “So, you’re a Big Four accounting firm and the banking industry is your client.” Why would you put 100,000 clients at risk for two stablecoins?
Circumstance, Tether’s main rival, was a victim of the Silicon Valley Bank failure in 2023. Circle’s USDC stablecoin briefly lost its dollar peg after $3.3 billion was deposited at the lender.
Senator Elizabeth Warren from Massachusetts, a Democrat and crypto-critic, has condemned “sham audits” Crypto firms are a growing industry.
Ardoino: “You can clearly see that certain sections of the US Congress are against crypto.”
The Big Four accounting firms have not responded to requests for immediate media response. DL News Requests for Comments
Priority number one
Ardoino said that because the blockchain records assets, stablecoins like Tether or Circle would probably not be as profitable a client than traditional financial firms.
Ardoino, however insists that he still wants to upgrade the quarterly attestations produced by BDO Italia.
He said, “We’re trying to make our case.” We’re building relationships in order to obtain the audit by a Big Four company.
Attestations vs audits
Tether didn’t publish any reports about reserves from 2014 until 2017. Tether is now 2022. едуку Quarterly attestations
It is important to note the subtle differences between attestations and audits.
A firm is asked to perform an audit, which involves conducting an independent review of the business. Accounting firms may uncover risks that were not known to the company in question. An audit can also highlight compliance problems at the firm.
In this instance, Tether provides documentation to the accounting firm and details the financial audit scope.
BDO Italia, in its latest attestation for instance, writes that the analysis it provides is only limited to the last quarter.
The stablecoin’s importance has increased over the last decade, and this minor accounting difference has now become a major one.
The Tether is in flight
Stablecoins can be a lifeline for those investors who are looking for security in a volatile market like crypto. Stablecoins, which are cryptocurrency pegged to fiat currencies like the US Dollar or Euro price, provide investors with stability.
Tether is one of several stablecoins available on the market. It uses a reserve model. The firm claims to hold an actual dollar for each USDT that is in circulation.
The latest attestation Tether’s reserves in December included $80 billion of US Treasury Bonds, as well as cash, Bitcoin and gold.
Liam Kelly, DL News Berlin correspondent. Contact him at liam@dlnews.com.