• Tether released an assurance report accompanied by an opinion from accounting firm Moore Cayman to verify that its stablecoins are fully backed.
  • The stablecoin issuer will release attestation reports regularly in the future.
  • Periodic reporting was required as part of Tether’s settlement with the New York Attorney General’s office. 

The company behind the world’s largest stablecoin Tether (USDT), Tether Holdings Limited, has recently released a report to confirm that its tokens are backed by its US dollar reserves. 

Tether to provide quarterly attestation reports

Tether recently shared a statement to provide the company’s Consolidated Reserves Report, along with an assurance report from accounting firm Moore Cayman. The stablecoin issuer attested that it had $35 billion in assets to back its USDT tokens last month. 

Moore Cayman’s document showed evidence that Tether had $35.28 billion in total assets against total liabilities of $35.15 million, meaning that the firm had more reserves than tokens issued. The accounting firm’s report stated:

In our opinion, the CRR as prepared by the management of Tether Holdings Limited Group as of February 2021 at 11:59 PM UTC is presented in accordance with criteria set out therein and it, in all material respects, fairly stated.

Tether Holdings explained that the stablecoin has always been fully backed, and the firm is committed to being among the most transparent stablecoins. 

The stablecoin firm has been long questioned about its reserves and whether the price of Bitcoin and other cryptocurrencies were inflated. Stuart Hoegner, the general counsel for Tether and Bitfinex, said Tether aims to counter any future claims of this by releasing attestations periodically in the future.

However, Tether’s report failed to mention where and how its reserves are held, which were concerns raised in the past by Tether critics. In contrast, monthly attestation reports of USDT rival USD Coin — backed by Centre Consortium, Circle and Coinbase — mention that US dollar collateral is held in custody accounts. 

Tether paid an $18.5 million fine in February

Tether and Bitfinex settled on the landmark case against the stablecoin company with the New York Attorney General’s office in February. The authorities claimed that Tether misrepresented the degree to which USDT coins were backed by collateral.

The New York attorney general’s lawsuit against the two companies was based on the understanding that USDT was not fully backed by fiat collateral at certain times. 

On top of paying $18.5 million for damages to the state of New York, Tether was required to submit periodic reporting of their reserves and transactions between the stablecoin issuer and crypto exchange Bitfinex. 

For the next two years, reports will need to be submitted on the firm’s fiat and non-cash reserves, and the two companies would need to stop servicing customers in New York. 

Tether was pleased to have settled for a fine of $18.5 million, considering all existing USDT exceed $35 billion. The firm further admitted no wrongdoing. 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

This subtle cue suggests Shiba Inu price will see a tumble

This subtle cue suggests Shiba Inu price will see a tumble

Shiba Inu price is presenting quite the tug of war battle during the second trading week of August. Previous outlooks have prophesied on both bearish and bullish sides of the coin, and as of yet, no target has been successfully breached. 

More Shiba Inu news

XRP price shows a massive influx of active wallets, should Investors be concerned?

XRP price shows a massive influx of active wallets, should Investors be concerned?

Ripple’s active addresses have increased by nearly 6x on multiple sets of occasions throughout the summer. Ripple price hovers just above a breached consolidative barrier, which is enticing traders to open a long positions.

More Ripple news

Top 3 Price Prediction: Whales at the shore play tag

Top 3 Price Prediction: Whales at the shore play tag

Bitcoin price continues to validate previous technical analysis outlooks issued throughout the month of July. BTC price trades at $24,182 as the intraday traders take advantage of the profit-taking consolidation near the $24,600 level.

More Bitcoin news

Will the Ethereum price finally flip Bitcoin?

Will the Ethereum price finally flip Bitcoin?

Ethereum price continues to outperform Bitcoin. Higher targets remain possible but investors should be aware of a potential liquidation. Ethereum price currently auctions at $1,896 as day traders have begun taking profit above the psychological $1,900 level.

More Ethereum news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis