Tether Pursues First-Ever Full Audit Amid Intensifying Industry Pressure

Tether, the company behind the largest stablecoin USDT, is making significant strides towards transparency by collaborating with a major accounting firm to conduct a comprehensive audit of its reserves. The move aims to verify that each token is backed 1:1 with assets amid growing industry pressure for greater transparency.

Celebrating this development, Paolo Ardoino, CEO of Tether, emphasized the importance of obtaining a full audit, saying 'If the President of the United States says this is top priority for the US, Big Four auditing firms will have to listen.'

Tether recently reported significant financial performance in its most recent attestation for Q4 2024, with $13.7 billion in profit for 2024, including approximately $6 billion in the fourth quarter alone. The company also reported $113 billion in direct and indirect holdings alongside $7 billion in excess reserves, representing a 36% year-over-year increase.

Critics have long questioned Tether's claims regarding its reserves, with Cyber Capital founder Justin Bons labeling it 'a major threat to the cryptocurrency ecosystem' due to concerns about the lack of independent verification of its reserve assets. The company has also faced regulatory scrutiny in the past, including a $41 million fine imposed by the Commodity Futures Trading Commission in 2021 for misrepresentations regarding its reserve backing.