Tether (USDT) will undergo a full audit from a top accounting firm, according to the stablecoin issuer’s chief technology officer.
Tether CTO Paolo Ardoino tells Euromoney that a top-12 accounting firm will audit the company because the leading four auditing companies are wary of stepping into the relatively unregulated crypto space.
“I think it’s one of the top 12, so not that bad. The big four are a bit more cautious about providing a full audit when the rules are not clear.”
Tether has recently denied recent rumors that 85% of its commercial paper holdings are backed by Chinese or Asian commercial papers and are being traded at 30% off. Commercial papers are a form of unsecured short-term debt issued by companies and financial institutions to meet liabilities and are usually sold at a discount.
Tether is the largest stablecoin by market cap and aims to stay pegged to the US dollar. It’s trading slightly below that peg at time of writing, currently priced at $0.998947. It dropped as low as $0.996 during the initial crypto market crash in May.
Ardoino notes, however, that Tether never denied requests for redemptions at $1.
“We showed that in the worst-case scenario — when there was Terra crumbling, the entire crypto market crumbling, and the stock market was going down — we got a ton of requests of withdrawals and we honored them within minutes.”