- Tether announced to conduct an audit in few months.
- Paxos claimed that Tether is not a real stable coin.
- Hoegner added that the platform hopes it will be the first to do this.
According to the project’s general counsel, within few months there will be an official audit for the most famous stablecoin Tether. Because stablecoin company, Paxos claimed that Tether is not a real stable coin.
An audit for one of the world’s largest crypto assets Tether has been waiting for several years and increased regulatory pressure seems to have accelerated the process.
Moreover, in a rare mainstream media interview on Consumer News and Business Channel (CNBC), Pala Ardoino -Tether CTO and Stu Hoegner – General Counsel. Were raised some questions regarding Tether (USDT) backing and transparency.
Accordingly, general counsel Hoegner answered,
“We are working towards getting financial audits. Which no one else in the stablecoin sector has done yet”.
Even more, Hoegner added that platform hopes will be the first to do the action. And that audits will be coming in few months, not years. General Counsel, explained that Tether, backed one-to-one with its reserves are not all U.S. dollars. According to him, Tether’s reserves are denominated in U.S. dollars. But they also include cash equivalent, bonds, secure loans, crypto assets, and other investments.
Henceforth, according to Tether’s transparency report, the current market capitalization of Tether (USDT) is 62 billion. Tether has grown 195% since the start of 2021 but is straggling behind rivals USDC and BUSD in terms of growth rate.
More so, rival stablecoin company Paxos took a swipe at both Tether and Circle in a blog post published on July 21. Insisting that they not comprehensively overseen by any financial regulators. A regulated blockchain infrastructure platform, Paxos announced that 96% of its stablecoin reserves are cash or cash equivalents.
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