Tether has changed its authentication providers from MHA Cayman to BDO LLP’s Italian division.
On Thursday, August 18th, 2022, it was announced that BDO Italia will be filing an attestation report on the reserves underpinning the $60 billion stablecoin.
According to MHA Cayman’s first-quarter attestations, Tether had $82.2 billion worth of USDT in circulation, which matched its $82.4 billion in assets.
In collaboration with BDO Italia, Tether aims to be able to provide monthly reports as opposed to quarterly audits.
As U.S., U.K., and international authorities scramble to regulate the area, stablecoin issuers may become reliant on frequent reporting.
Even while attestations are not as thorough as comprehensive audits, they inform regulators and industry participants that a stablecoin organisation can fulfil its responsibilities to its holders.
USDT, which was introduced in 2014, is a crucial component in the crypto economy since many cryptocurrency traders use it to purchase other cryptocurrencies.
Tether’s significant quantity of commercial paper holdings in its reserves began drawing notice from regulators as early as July 2021. The Commodities and Futures Trading Commission and the Attorney General of New York fined Tether for allegedly misrepresenting the makeup of its reserves.
As seen by MHA’s first-quarter attestations, the company pledged in May to lower its commercial paper holdings in favour of better assets such as Treasury bills. Compared to the end of 2021, when its commercial paper holdings were 31%, they are now at 25%, while its treasury bill holdings have gone up from 44% to 46%.
Tether has traditionally denied demands about the location of its reserves. However, in May it was reported that part of its reserves is housed in Capital Union, a boutique bank in the Bahamas. Tether declined to comment on the situation. Private companies are not obligated to reveal their relationships.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.