In other news, Tether, the world’s most popular stablecoin in the world, has announced they are commencing with an official audit within a few months, according to the council. Being the third-largest digital asset in the world, an audit for Tether has been greatly anticipated for several years. The increase in regulatory pressure could be one of the leading factors that accelerated the need for an audit.
Tether CTO Paolo Ardoino, and general counsel Stu Hoegner were asked pressing questions during a mainstream interview on CNBC regarding Tether’s backup and transparency. According to Hoegner, Tether is the only stablecoin that is leaning towards financial audits, no other stablecoin has headed towards that process.
Hoegner added that Tether had hoped to be the first firm to head towards financial audit, he stated the auditing will be happening in months. He also added that Tether is backed by its reserves in direct correspondence, but admittedly the reserves are entirely in U.S dollars. Hoegner explained that the reserves are dollar-weighted, but are not limited to dollars only, they include cash equivalents, secured loans, bonds, and crypt assets among other investments.
Tether’s transparency report shows USDT’s current market cap is at 62 billion, and it has grown by 195% from the start of the year. Despite the growth, it is lagged behind USDC and BUSD.
Rival Stablecoin Company Paxos has taken a swing at Tether in a blog post on July 21, claiming Tether is not substantially supervised by financial regulators. According to Paxos, Tether is not a regulated digital asset since it lacks a regulator, therefore Tether tokens are not stablecoins.
Tether revealed a breakdown of its backing earlier in May after a series of scrutiny from U.S lawmakers. The firm has been submitting reports of its reserves to the New York Attorney’s General office in February.