Tether to issue monthly attestation reports with new accounting firm BDO Italia
USDT issuer Tether is working with BDO Italia to increase its transparency by publishing monthly attestation reports.
Tether said Aug. 18 that it is now working with BDO Italia, a top five global accounting firm, in an effort to increase the transparency of the USDT stablecoin.
The collaboration will see Tether release its proof-of-reserve report on a monthly basis. BDO Italia took over from MHA Cayman as Tether’s accounting firm in July 2022.
Tether expects to increase its transparency and accountability as part of a commitment to maintaining the trust of customers using the USDT stablecoin on a daily basis.
Tether also hinted at undergoing a comprehensive audit with BDO Italia.
Chief Technology Officer Paolo Ardoino remarked that Tether was committed to remaining a stable asset powering the Web3 economy.
“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 fine of $41 million from the US Commodity Futures Trading Commission and another $18.5 million to the office of the New York Attorney General for allegedly providing misleading details about the assets backing its USDT stablecoin.
As a necessary condition to continue operating, Tether partnered with MHA Cayman to publish a quarterly report to show details of assets in its reserve.
Tether’s transparency report at the end of 2021 revealed its reserve holdings slightly exceeded its liabilities. It held $78.67 billion in reserves and had liabilities of $78.53 billion. For commercial paper, Tether held approximately $24 billion, which the stablecoin issue promised to reduce with time.
Tether’s commercial paper promise
In May, rumors filled the crypto space that Tether’s commercial paper portfolio was made up of 85% Chinese papers and was trading at a 30% discount. Tether, however, clarified that USDT is backed by less than 25% of commercial papers and it is working to reduce it to 0%.
In pursuit of this promise, Tether announced on July 1, that $5 billion of its commercial paper would expire by July 31, which will reduce its commercial paper from $8.4 billion to a low of $3.5 billion.