Tether is preparing for its first full audit

Stablecoin giant Tether, known for its USDT token, has finally decided to conduct a full financial audit. This important development came after years of criticism and suspicion regarding the token’s backing. The company is actively seeking an auditor from the Big Four firms to confirm its financial obligations.

Tether’s Priorities

Tether CEO Paolo Ardoino said that conducting a full audit is the company’s “top priority.” He expressed confidence that the process will be easier under the new U.S. president, Donald Trump, who is known for his pro-crypto stance.

If the U.S. president says this is the top priority for the country, the Big Four audit firms are bound to listen, so we’re very happy with that,” Ardoino told Reuters on March 21.

What is a full Tether audit and what does it mean?

Currently, Tether publishes quarterly reports, but does not undergo a full independent annual audit. This is an important distinction, as a full audit provides a deeper and more extensive review of the financial data, which provides more assurance to both investors and regulators.

The company claims that USDT maintains its stable value by being pegged 1:1 to the US dollar. This means that each USDT token is backed by reserves equivalent to its circulating supply, including traditional currency, cash equivalents, and other assets.

Choosing an auditor

Interestingly, Ardoino did not specify which of the Big Four audit firms — PricewaterhouseCoopers (PwC), Ernst & Young (EY), Deloitte, or KPMG — the company plans to partner with. These four firms are the largest international players in the audit and consulting fields.

Preparing for an Audit

Ahead of a major financial audit, Tether hired Simon McWilliams as its CFO in early March. This demonstrates the company’s serious intention to improve its reputation in the eyes of investors and regulators.

In Conclusion

Conducting a full audit of Tether could be an important step towards increasing transparency and trust in the company. With the stablecoin market increasingly competitive and under increasing scrutiny from regulators, such a move could have a significant impact on the future of Tether and its USDT token.