Tether Holdings Limited, a stablecoin issuer, has updated its assurance and attestation process. It also revealed that it had been in collaboration with BDO Italia. The accounting firm will conduct monthly tether assurance reports based on the stablecoin issuer’s reserves. Tether’s quarterly assurance opinion was published by BDO the next day. It noted that there had been a 58% drop in commercial paper reserves.
Company Publishing Quarterly Consolidated Reserves Report – Tether Hires BDO Italia
Tether Holdings Limited announced Thursday that BDO Italy will produce monthly USDT assurance report. This company is behind the world’s largest stablecoin (USDT) by market capitalization. In the past, Tether’s assurance reports were written by the firm MHA Cayman, an auditor formally known as Moore Cayman. Tether’s announcement on August 18 notes that it has worked with the top five ranked accounting firm in terms of revenue, BDO Italia, since July 2022 for the firm’s quarterly attestation.
After the announcement noting Tether will leverage BDO for assurance reports, Tether and BDO published the stablecoin’s quarterly consolidated reserves report. BDO’s report breaks down Tether Holdings Limited’s assets as of June 30, 2022. “As of June 30th, the CCR and BDO confirmed a more than 58% decrease in Tether’s commercial paper holdings over the prior quarter from $20B to $8.5B, which is on track with Tether’s commitment to the community,” Tether detailed in a blog post published on August 19. Tether’s consolidated reserves report summary continues:
According to previous announcements, Tether’s exposure to commercial papers will decrease to 200m by August 2022. This is in addition to the zero that was achieved before the year ended. Tether increased its cash and bank deposits holdings by 32% over the same period.
In 2022, a Myriad of Stablecoins Fail. The Number of Tethers in Circulation drops by 18.31% within 130 Days.
Tether’s recent report follows the issues with myriad stablecoin assets in 2022. The Stable Universe Limited temporarily depegged HUSD from its U.S. dollars parity on August 17, 18 and 19. It fell to $0.827 an unit Thursday. HUSD’s peg has since been restored, but a few days before the depegging incident, AUSD, a Polkadot-based stablecoin, dropped 98% in value on August 14. The stablecoin trades at $0.8167/unit, but AUSD rebounded to $0.85 on August 19. In addition to AUSD, the largest stablecoin depegging event in 2022 derived from Terra’s UST implosion.
The once-stable coin, Terra’s UST, which is now known as terrausd classic (USTC), is currently trading for $0.0237 per unit. This year, stablecoins like Waves’ neutrino usd (USDN), Abracadabra’s magic internet money (MIM), and Tron’s USDD token saw their values slip below the $1 parity. Although USDT and USDC, which are the dominant stablecoins, haven’t seen any issues with their values falling below the peg, there has been a significant drop in the total number of tethers that is in circulation since April 11. There were approximately 82.994,361,442 total tethers at that time, after the USD-pegged cryptocurrency saw an increase of 3% in its growth.
Today, the number of tether in circulation, according to coingecko.com statistics, indicates that there’s currently 67,549,562,651 tether today. Data shows that the number of tethers in circulation dropped 18.31% over 130 days.
Tether CTO Says Team Aims to Maintain Its Role as the Crypto Economy’s Leading Stablecoin
USDT’s 67.54 trillion USDT is 6.266% from the $1.07 Trillion crypto market. Moreover, while there was $104.78 billion in global cryptocurrency trade volume during the last day, USDT captured $60.19 billion, which equates to 57.87% of today’s crypto trade volume. Tether Holdings Limited’s chief technology officer, Paolo Ardoino, explained on Friday that aligning with BDO shows the company’s commitment to the stablecoin ecosystem.
“We are fully committed to maintaining our role as the leading stablecoin in the market,” Ardoino said in a statement. “The utility of Tether continues to be supported by the transparency of its reserves and has been a leading source of stability allowing us to build a tool for the global economy. Our commitment to transparency and the community is a long-standing pillar in the underlying ethos of the company and aligns with our responsibility as a market leader.”
USDC uses Grant Thornton LLP to obtain monthly attestations. This is a top 5 accounting service firm. The Centre consortium, which is made up of Circle Financial and Coinbase Global, is usd coin’s (USDC) custodian and stablecoin issuer. In addition to Tether’s quarterly attestation that looks at reserves held on June 30, Centre and Grant Thornton published a USDC reserves attestation for June 2022 as well.
Tether Holdings Limited has teamed up with BDO Italy. What are your thoughts? What do you think about Tether’s latest quarterly assurance report which shows a decrease in commercial paper holdings? Comment below and let us know how you feel about the subject.
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