Tether (USDT) is Fully-Backed According to a Cayman Islands-based Accounting Firm
Each Tether (USDT) in circulation is fully-backed according to an assurance opinion, on Mar 30, from Moore Cayman, a part of Moore Global—a London-based accounting firm and one of the largest globally.
The Moore Cayman’s Attestation
The attestation provided by Moore Cayman is an independent account service whose lenses were on Tether Limited’s company controls and processes.
This involved digging deeper into their reserves to improve the public’s quality or context of information due to what Tether Limited terms as increasing “public’s interest.”
Amid the growing significance of USDT, the aim was to provide assurance. Consequently, with risk mitigation and more transparency, token users—especially deep-pocketed investors-can make informed decisions, especially on trades.
In response, Tether Limited, the official issuer of USDT, said this is confirmation of what they had known all along that tokens were fully pegged.
“Tether has always been fully backed, and the assurance opinion we made available today confirms it once again. As Tether’s growth in the market continues to validate our business, we understand the public’s interest in this matter. We are pleased to share this attestation as part of our ongoing commitment to transparency.”
Crypto Community Wants a Formal Audit of Tether Limited’s Reserve
The question of whether each USDT token is backed an equivalent amount of USD is contentious.
Critics of crypto and Bitcoin argue that the whole system is manipulated by billions of stablecoins. Precisely, USDT reserves haven’t been verified by any of the top four professional auditing firms and, therefore, introduce a system’s weakness.
While Moore Cayman checked and made the confirmation, they aren’t an accredited audit firm. They also don’t belong to any formally recognized auditing body.
Consequently, according to critics, their “assurance opinions” will remain simple attestations and not formal audit statements.
USDT is critical to crypto. As of Mar 30, the stablecoin had a market capitalization of $36.5 billion. It finds use, especially in DeFi, where due to the explosion of open finance protocols, over $1 trillion of stablecoins were processed in 2020.
Earlier on, BTCManager reported that USDT’s on-chain volume surged above $232 billion in Feb 2021.