The collaboration will see Tether launch its proof-of-reserve report on a monthly foundation. BDO Italia took over from MHA Cayman as Tether’s accounting firm in July 2022.
Tether expects to improve its transparency and accountability as a part of a dedication to sustaining the belief of consumers utilizing the USDT stablecoin each day.
Tether additionally hinted at present process a complete audit with BDO Italia.
Chief Technology Officer Paolo Ardoino remarked that Tether was dedicated to remaining a secure asset powering the Web3 financial system.
“The utility of Tether has grown beyond being just a tool for quickly moving in and out of trading positions, and therefore it is mission-critical for us to scale alongside the peer-to-peer and payments markets.”
Tether’s journey to Transparency
In 2021, Tether incurred a positive of $41 million from the US Commodity Futures Trading Commission and one other $18.5 million to the workplace of the New York Attorney General for allegedly offering deceptive particulars concerning the property backing its USDT stablecoin.
As a mandatory situation to proceed working, Tether partnered with MHA Cayman to publish a quarterly report to present particulars of property in its reserve.
Tether’s transparency report on the end of 2021 revealed its reserve holdings barely exceeded its liabilities. It held $78.67 billion in reserves and had liabilities of $78.53 billion. For industrial paper, Tether held roughly $24 billion, which the stablecoin issue promised to scale back with time.
Tether’s industrial paper promise
In May, rumors crammed the crypto house that Tether’s industrial paper portfolio was made up of 85% Chinese papers and was buying and selling at a 30% low cost. Tether, nevertheless, clarified that USDT is backed by lower than 25% of economic papers and it’s working to scale back it to 0%.
In pursuit of this promise, Tether announced on July 1, that $5 billion of its industrial paper would expire by July 31, which is able to scale back its industrial paper from $8.4 billion to a low of $3.5 billion.