Tether promises an exam in “months” while Paxos claims USDT is not a true stablecoin

In a few months there will be an official audit of Tether, the most popular stable coin in the worldsaid the project’s general counsel.

The third largest digital asset in the world has been expected to be audited for several years increased regulatory pressure appears to have accelerated the process.

In a rare media interview on CNBC, Tether CTO Paolo Ardoino and General Counsel Stu Hoegner received some urgent questions about USDT support and transparency.

Tether promises an exam in “months” while Paxos claims USDT is not a true stablecoin
Tether promises an exam in “months” while Paxos claims USDT is not a true stablecoin

Hoegner answered the question with the words:

a ????????????????????????????????????????????????? ????????????????????????????????????

Högner added that the company hopes to be the first to do this and that the audits will arrive in “months, not years”. He claimed that Tether was covered one-to-one with its reserves, but acknowledged that those reserves were not all in US dollars. According to Högner, Tether’s reserves are heavily weighted in dollars, but also include cash equivalents, bonds, secured loans, crypto assets, and other investments.

According to Tether’s transparency report, the current market capitalization is USDT 62 billion. Since the beginning of the year it has grown by 195%however, it lagged rivals USDC and BUSD in growth.

Circle released its own booking disclosure report on July 21st, revealing that 61% of USDC’s reserves were held in cash and the remainder in commercial papers, treasury and bond accounts.

Paxos throws himself into the pool

In a related development, competing stablecoin company Paxos attacked both Tether and Circle on a July 21 blog post, stating that “they are not fully overseen by any financial regulator.”.

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

Paxos gave it away 96% of own stablecoin reserves are in cash or cash equivalents.

Tether first released a breakdown of its USDT endorsement in May after U.S. lawmakers tightened scrutiny.. Since then, the company has submitted regular reports on its bookings Reached an agreement with the New York attorney general in February.

Similar Posts