Tether, the company that issues the USDT stablecoin, has undergone the System Organization Control (SOC) 2 Type 1 Audit by the American Institute of Certified Public Accountants in the United States.
Paolo Ardoino, CEO of Tether, highlighted that the completion of this audit marks a significant milestone in the cryptocurrency company's evolution towards transparency and trust.
The issuer of USDT, which is currently the most capitalized stablecoin in the market and the most traded cryptocurrency in the world, has faced years of criticism for its lack of transparency in the reserves backing the issuance of the stablecoin. However, after being charged by the New York District Attorney's Office, which banned its use Within the state in early 2021, the company has committed to transparency in its reserves of value, to foster the security and trust of its users.
Tether envisions a new level of compliance
The SOC 2 Type 1 audit is an assessment and certification of a company or organization's security controls developed by the American Institute of Certified Public Accountants (AICPA), which is responsible for developing rules related to security, valuation and financial statements, ethics, and quality control of companies. Therefore, the completion of this audit represents an important step for Tether in security compliance, demonstrating its current and solid practices in the field of management and cybersecurity.
Ardoino emphasized that the SOC 2 Type 1 audit has become the gold standard for corporate security compliance and that its completion demonstrates the company’s commitment to providing “the most trusted and compliant stablecoin in the world.”
The SOC 2 Type 1 certification demonstrates that Tether is employing robust IT control measures that ensure the security of its systems, ensure they are accessible when needed, and maintain the privacy of user information. The AICPA audit process also examines cybersecurity measures such as firewalls, intrusion detection, and enhanced authentication for customers, along with network reliability and speed of problem resolution.
These types of control tests are essential to detect, prevent or correct any risk and, according to Ardoino, Tether is updating its security processes to lead the crypto industry by example.
While cryptocurrencies are a fast-growing market that has expanded globally in just a few years, they also carry certain security risks that companies must address to ensure the well-being and protection of their users.
A commendable commitment
Ardoino assured that Tether will undergo this and other audits and control processes periodically, in order to demonstrate that it is committed to the security and trust of its stablecoin users. In the statement, he indicated that:
“Tether has also committed to undergoing SOC 2 examinations annually to ensure its operations and security practices are operated consistently with the highest standards.”
On the other hand, Ardoino commented that the company has also committed to obtaining SOC 2 Type 2 certification next year, to demonstrate the operational effectiveness of its internal processes and controls.
The most traded cryptocurrency in the world
USDT is the third largest cryptocurrency in the market by market capitalization. However, it leads the market in terms of daily trading volume, trading over $71.000 billion per day, according to data from CoinMarketCap.
Tether’s stablecoin recently surpassed the $100.000 billion mark in market capitalization, in line with the bull market and renewed interest from users and investors in the crypto space. As of today, USDT is accessible on multiple blockchain networks, being deployed on chains such as Ethereum, Solana, Algorand, Tron, EOS, and others that have helped its expansion.
Continue reading: Ethereum Foundation addresses criticism of centralized development
