Tether appoints BDO Italia to vouch for asset reserves and publish monthly reports

Tether, the world’s largest stablecoin, said on Thursday it had appointed accounting firm BDO Italia to vouch for its asset reserves, and aims to publish its reports monthly rather than quarterly by the end of the year. ‘year. Stablecoins are a type of cryptocurrency designed to hold a constant value, such as a 1:1 peg to the US dollar. They are widely used to move funds between different cryptocurrencies or as regular cash.

Attached says its coin maintains its value by holding dollar-denominated reserves to match or exceed the value of Tether coins in circulation. These reservations have long been under scrutiny which intensified after crypto markets sold off in May following the collapse of stablecoin TerraUSD.

Tether, run by a company in the British Virgin Islands, has published reports in recent years in which accounting firms attest to the size of its reserves. Reserves totaled $82.4 billion (approx. Rs. 6,57,100 crore) as of March 31, of which $39 billion (approx. Rs. 3,11,100 crore) was in US Treasury bills and $20 billion (approx. 1,59,500 crore) in commercial paper.

The two most recent reports were written by a Cayman Islands company, MHA Cayman. Prior to this, Tether used another Cayman Islands company, Moore Cayman, its website shows.

BDO Italia is an audit and assurance company based in Italy, an independent member firm of BDO International Limited. Tether’s management includes at least two Italian executives. Most of the team members are based in Europe and the Bahamas, where most of the reserves are kept, chief technology officer Paolo Ardoino told Reuters.

Tether said in a statement that it began working with BDO Italia in July, adding that the relationship was “the next step on the company’s path to a full audit.”

“Our community has asked over time to improve the auditing firm we use because they felt like they wanted something bigger,” Ardoino said.

Tether will have reduced its commercial paper holdings to $200 million (about 1,600 crore rupees) by the end of August, Ardoino added, from $8.4 billion (about 67,000 crore rupees) on July 1. . He did not specify what assets these funds had been invested in instead.

© Thomson Reuters 2022

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