Tether, with the significant market share of its stablecoin USDT, has strengthened its position in the cryptocurrency market, while also facing increased demands for scrutiny of its treasury reserves. The company injected an additional $2 billion worth of USDT into the market last week, prompting calls for greater transparency and oversight of its reserves. Tether CEO Paolo Ardoino indicated their willingness to undergo an audit conducted by a prestigious firm from the Big Four to address these concerns.
“Giants Reluctant to Work with Tether”
Despite Tether’s significant presence in the market, Ardoino admitted that major auditing firms like Deloitte, PwC, EY, and KPMG are hesitant to work with Tether due to potential reputational risks. Appointing one of these firms as Tether’s auditor is a top priority for the company, underlining its commitment to increasing transparency and investor confidence.
With a market value exceeding $109.5 billion, Tether’s USDT is the third largest cryptocurrency in circulation. The auditing of the company’s treasury reserves is crucial, especially amid reports suggesting Tether’s widespread use in illegal activities within the cryptocurrency market, which impacts investor confidence.
Tether’s role as a vital channel for transactions between fiat currencies and cryptocurrencies highlights the importance of auditing its reserves to verify reserve adequacy. Despite its widespread use, the complexities of the industry, including security breaches, regulatory pressures, and repercussions from events like the FTX bankruptcy, continue to pose challenges in appointing top-tier audit firms.
Ardoino discussed the reluctance of the Big Four firms to prioritize auditing stablecoin issuers like Tether, noting that the allure of traditional banking clients outweighs the perceived benefits of engaging with crypto. Nevertheless, Ardoino is determined to advance Tether’s auditing standards beyond the quarterly validations provided by BDO Italia and aims to establish relationships that will facilitate interactions with reputable audit firms.
Elizabeth Warren Acknowledges Criticisms
As known, prominent figures like U.S. Senator Elizabeth Warren continue to criticize the perceived lack of oversight in the cryptocurrency world amidst increasing regulatory scrutiny.
While advocating for greater transparency and accountability in the cryptocurrency world, Ardoino also acknowledged the prevailing negative perspective in certain circles of the U.S. Congress, emphasizing the need to overcome regulatory challenges.
