Cayman Island-based accounting firm, Moore Cayman, has attested that Tether has enough assets to cover the total issuance of USDT tokens.
Moore Cayman, an accounting firm based in the Cayman Islands, has provided an attestation report regarding Tether’s reserves. The independent accountant’s report states that the consolidated information prepared by Tether’s management is correct as of June 30, 2021.
Specifically, the consolidated total assets amounting to $62.7 billion exceeds Tether’s consolidated total liabilities, which is $62.6 billion. Thus, the report says that Tether’s reserve for digital assets issued exceeds the amount required to redeem those assets.
Tether has been repeatedly called on to release a thorough audit and has been somewhat compelled to be more transparent over these years.
It had downplayed any concerns about its reserves, even as it began minting millions of new USDT tokens. The latter development had the market turn its attention to USDT and its reserves. As more and more tokens were minted, so too did investor’s doubts grow.
Some of the earlier reports released by Tether did not offer as much weight in terms of making this particular development a little more relevant. Moore Cayman offered the same confirmation of Tether’s consolidated report in March 2021.
Tether worries slowly coming to an end?
Tether’s reserves have long been a point of contention in the cryptocurrency market. The concerns surrounding USDT did not stop it from becoming the market’s most popular stablecoin. Its supply in 2021 has increased by 200%, and most recently, one billion USDT was issued on the TRON blockchain.
But Tether does have to keep up and was perhaps preempted by Circle announcing that it would be more transparent with USD Coin (USDC). The latter is the market’s second most popular stablecoin and wants to lead accountability and transparency initiatives. In its report, it revealed that over 60% of its USDC supply was backed by cash or cash equivalents.
Some of the scrutinies against Tether have been intense — including allegations by Bloomberg that the Department of Justice was investigating it for fraud. Tether said that the claims were old and that it regularly participates in discussions with authorities.
General Counsel Stuart Hoegner has said that Tether will conduct an audit in a matter of months, which would be a huge step forward in terms of transparency. Investors are keenly waiting on this, hoping it will put an end to the whole saga. With the end of the case with the New York Attorney General, Tether too will be hoping that the audit will satisfy everybody.
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