Tether seeks key audit from major accounting firm

Tether, the issuer of the world's largest stablecoin, confirms negotiations with one of the "Big Four" auditing firms to validate its reserves, according to CEO Paolo Ardoino.

The company Tether, known for issuing the stablecoin USDT, the most used stablecoin in the world, is negotiating with some of the most prestigious auditing firms in the world, the so-called Big Four, in order to carry out a comprehensive audit of your reserves.

This process seeks to provide greater transparency and build confidence in the stability of USDT, especially in the face of increasing regulatory scrutiny in the United States. Through this initiative, Tether seeks to demonstrate that every USDT in circulation is fully backed by sufficient and secure assets.

Over the years, Tether has faced questions about the composition of its reserves. Although the company claimed that each USDT was backed by one US dollar, the lack of independent and comprehensive audits has raised concerns among investors and regulators. Now, with increased regulatory attention, Tether is seeking to demonstrate its commitment to transparency.

The reasons behind the Tether audit

Tether's decision to hire one of the world's most prestigious auditing firms is no coincidence. The "Big Four," which include Deloitte, EY, KPMG, and PwC, are synonymous with rigor and credibility in the financial world. An audit conducted by one of these firms would verify the existence and valuation of the assets backing USDT and assess their liquidity and security.

Furthermore, this process would allow Tether to comply with regulatory requirements being implemented in the United States. New regulations require stablecoin issuers to demonstrate that their assets are sufficient to back all coins in circulation and that they comply with anti-money laundering and counter-terrorism financing standards.

The political and regulatory impact in the United States

The Donald Trump administration in the United States has played an important role in facilitating this move toward auditing. According to statements From Ardoino to Reuters, the Trump-led government has taken a more open approach to cryptocurrencies, in contrast to the restrictions imposed during previous administrations.

It's worth noting that the current policy framework has allowed the company to access traditional financial services and collaborate with institutions to improve their regulatory compliance, an essential step toward auditing. Meanwhile, the GENIUS Act, which seeks to regulate stablecoins in the country, was initially approved by the Senate Banking Committee with 18 votes in favor and 6 against. This vote reflects a growing consensus on the need to establish clear standards for stablecoins, although a vote in both chambers is still required for final approval.

On the other hand, Tether has consolidated a significant position in the US market with a historic investment in Treasury bonds, acquiring more than $33.000 billion in public debt. This move not only positioned it as one of the largest institutional buyers in the country but also reflected its commitment to liquid and reliable reserves, an essential pillar for reinforcing the stability of USDT and validating its legitimacy in global markets.

The combination of political support, strategic investments, and legislative advances in the cryptocurrency industry positions Tether as a central player in the integration of stablecoins into the traditional financial system.

USDT audit is prioritized

Tether has begun talks with one of the Big Four, though it has yet to reveal which one. Ardoino emphasized that the process is a top priority, especially following the appointment of Simon McWilliams as CFO, who will lead the technical audit. Unlike current quarterly reports, a full audit would require verifying the existence of reserves, liquidity, and the ability to cover USDT issuance in real time.

Furthermore, Tether must ensure that the audit is completely transparent and that the results are clearly communicated to investors and regulators. The company must also collaborate closely with the auditing firm, providing all necessary documentation and allowing access to its internal systems.

Future prospects for Tether and the crypto market

If Tether can validate its reserves through an internationally recognized signature, it could significantly strengthen its credibility with institutional investors and global regulators. This could also set a new standard for other stablecoins like USDC or BUSD, which have already taken similar steps to increase their financial transparency.

On the other hand, failure in this process could have serious consequences for Tether and the crypto market in general. A negative or incomplete audit could trigger a crisis of confidence among USDT users, affecting its value and usefulness as a medium of exchange within the digital ecosystem. Furthermore, it could lead to increased regulatory restrictions for Tether and other crypto companies operating under similar models.

In conclusion, Tether is at a critical juncture as it seeks to complete an independent audit with a leading global accounting firm. This step responds to years of demands for greater transparency from the user community and reflects the growing regulatory pressure on stablecoins globally. 

While the current political environment in the United States appears favorable for this development, success will ultimately depend on Tether's ability to fully demonstrate the strength and liquidity of its USDT reserves.

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.