Tether Has Enough Reserve for its Issued Tokens, Audit Firm Says
Godfrey Benjamin Aug 10, 2021 04:30
Moore Cayman, an Independent Auditor has validated that Tether Holdings has enough reserve cash for its issued stablecoin of the USDT.
Tether Holdings Limited, the company behind the largest stablecoin USDT, has released its Consolidated Reserves Report (CRR) for June. Per the report, the firm has enough dollar reserves for its issued tokens.
The Cayman Islands-based independent auditor affirmed the report that Tether’s claims about its reserves for June are indeed correct.
The USDT stablecoin has maintained its dominance in the cryptocurrency industry with a current market capitalisation of $62.48 billion. Per the published CRR, the firm’s consolidated total assets came in at $62,773,190,075, while the consolidated liabilities were pegged at $62,628,932,116 for June. Of these liabilities, those associated with USDT amounted to a total of $62,610,829,196.
The difference between the assets and liabilities leaves a remarkable difference, Moore Cayman said. “The consolidated group’s reserves held for the digital tokens issued exceeds the amount required to redeem the digital tokens issued,” it said.
“In our opinion, the CRR as prepared by the management of Tether Holdings Limited group as of 30 June 2021 at 11:59 PM UTC, is presented in accordance with the criteria set out therein and is, in all material respects, fairly stated,” the independent auditor said.
Tether earlier was embroiled in controversies relating to its reserve assets. The firm has faced many allegations of market manipulations linked to the stablecoin USDT, which it has denied.
In February, Tether signed a settlement with the New York Attorney General's office, agreeing, among other things, to periodically release CRR.
With the report and the confirmation of its accounting records, Tether may keep rewriting its transparency record with regulators and consumers alike.
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