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Stablecoin Tether (USDT) to undergo full audit for transparency

Published by
Nonhlanhla P Dube

According to the stablecoin issuer’s chief technology officer, Tether (USDT) will be subjected to a complete audit by a top accounting firm.

Tether CTO Paolo Ardoino tells Euromoney that the company will be audited by a top-12 accounting firm because the top four auditing firms are hesitant to enter the somewhat unregulated crypto market.

“I think it’s one of the top 12, so not that bad. The big four are a bit more cautious about providing a full audit when the rules are not clear.”

Tether has lately rejected allegations that 85 % of its commercial paper assets are backed by Chinese or Asian commercial papers and are trading at a 30% discount. Commercial papers are unsecured short-term loans issued by businesses and financial institutions to pay liabilities, and they are typically sold at a discount.

Tether is the most valuable stablecoin by market capitalization and intends to remain tied to the US dollar. At the time of writing, it was trading just below that mark, at R15,96. During the initial crypto market crisis in May, it fell as low as $0.996.

Ardoino, on the other hand, claims that Tether has never declined requests for R15,98 redemptions.

“We showed that in the worst-case scenario — when there was Terra crumbling, the entire crypto market crumbling, and the stock market was going down — we got a ton of requests of withdrawals and we honoured them within minutes.”

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
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