Bitcoin
BTC$61 147.24

-2.67%

Ethereum
ETH$4 029.86

-2.02%

Binance Coin
BNB$481.60

1.27%

Cardano
ADA$2.16

-0.04%

Tether
USDT$1.000237

0.02%

Solana
SOL$202.10

1.16%

Tether promises an audit in months as Paxos claims USDT is not a real stablecoin


22 Jul 2021

#Tether

Tether’s general counsel said a full audit is coming in months. There will be an official audit of the world’s most popular stablecoin Tether within months according to the project’s general counsel. An audit for the world’s third-largest digital asset has been awaited for several years and increased regulatory pressure appears to have accelerated the process. In a rare mainstream media interview on CNBC, Tether CTO Paolo Ardoino and general counsel Stu Hoegner were asked some pressing questions on the subject of USDT’s backing and transparency.

Hoegner responded to the question by saying: “We are working towards getting financial audits, which no one else in the stablecoin sector has done yet.” Hoegner added that the firm hopes to be the first to do so and that audits will be coming in “months, not years”. He stated that Tether is backed one-to-one with its reserves but admitted that those reserves were not all US dollars. According to Hoegner, Tether’s reserves are heavily dollar-weighted but also include cash equivalents, bonds, secured loans, crypto assets, and other investments.

The current market capitalization of USDT is 62 billion according to Tether’s transparency report. It has grown by 195% since the beginning of the year but has lagged behind rivals USDC and BUSD in terms of growth. Circle released its own reserves disclosure report on July 21, revealing that 61% of USDC’s reserves were held in cash and cash equivalents with the rest in commercial paper accounts, treasuries, and bonds.

Paxos takes a swipe

In a related development, rival stablecoin company Paxos took a swipe at both Tether and Circle in a July 21 blog post claiming that they are “not comprehensively overseen by any financial regulators.”

“Neither USDC nor Tether is a regulated digital asset, for the simple reason that neither token has a regulator. In fact, neither USDC nor Tether tokens are ‘stablecoins’ in anything other than name.”

Paxos revealed that 96% of its own stablecoin reserves are cash or cash equivalents. Tether revealed a breakdown of its USDT backing for the first time in May, following increased scrutiny from U.S. lawmakers. The firm has been submitting periodic reports regarding its reserves since reaching a settlement with the New York Attorney General’s Office in February.


Related

USDT is minted for crypto as $1M bounty offered to unpick reserves
USDT is minted for crypto as $1M bounty offered to unpick reserves
Tether fires back against report it is using reserves for investments and making crypto-backed loans
Tether fires back against report it is using reserves for investments and making crypto-backed loans
Stablecoin inflows to exchanges dip as traders watch Bitcoin from the sidelines
Stablecoin inflows to exchanges dip as traders watch Bitcoin from the sidelines
Tether mints more coins to break $60 billion market cap
Tether mints more coins to break $60 billion market cap
New NordFX Savings Account: Investment Income Plus Trading Income
New NordFX Savings Account: Investment Income Plus Trading Income
Tether’s market cap hits $50B as stablecoin adoption grows
Tether’s market cap hits $50B as stablecoin adoption grows
USDT, USDC, and BUSD represent 93% of stablecoin market cap
USDT, USDC, and BUSD represent 93% of stablecoin market cap
Bitcoin exchanges just saw massive Tether stablecoin deposits
Bitcoin exchanges just saw massive Tether stablecoin deposits
Stablecoin reserves on crypto exchanges hit new historic high of $10B
Stablecoin reserves on crypto exchanges hit new historic high of $10B

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 64% 76 $61 147.24 -2.67% -0.74% $1 152 718 704 345 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 69.6% 57 $4 029.86 -2.02% 4.61% $475 677 778 716 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 68.8% 60 $481.60 1.27% 1.41% $80 332 185 360 BNB 7 days price change
4 Cardano (ADA) ADA Cardano predictions 91.2% 12 $2.16 -0.04% -3.09% $71 091 086 342 ADA 7 days price change
5 Tether (USDT) USDT Tether predictions 91.2% 1 $1.000237 0.02% 0.07% $69 590 628 695 USDT 7 days price change
6 Solana (SOL) SOL Solana predictions 71.6% 54 $202.10 1.16% 26.89% $60 797 297 002 SOL 7 days price change
7 XRP (XRP) XRP XRP predictions 71.2% 50 $1.092260 -0.94% -4.39% $51 277 603 422 XRP 7 days price change
8 Polkadot (DOT) DOT Polkadot predictions 65.2% 79 $44.18 0.96% -0.22% $43 626 505 854 DOT 7 days price change
9 USD Coin (USDC) USDC USD Coin predictions 91.6% 1 $1.000378 0.03% 0.06% $32 426 749 540 USDC 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 72.8% 56 $0.245727 0.39% 2.83% $32 386 919 029 DOGE 7 days price change
11 Terra (LUNA) LUNA Terra predictions 67.6% 65 $43.04 4.35% 15.63% $17 285 663 397 LUNA 7 days price change
12 UniSwap (UNI) UNI UniSwap predictions 74% 47 $25.76 -2.42% -1.23% $15 753 060 976 UNI 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 66% 65 $68.24 5.67% 20.76% $15 031 739 762 AVAX 7 days price change
14 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 62.4% 75 $61 173.53 -2.64% -0.70% $13 525 040 631 WBTC 7 days price change
15 Litecoin (LTC) LTC Litecoin predictions 70.8% 57 $193.37 -2.94% 1.12% $13 305 271 155 LTC 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.