Crypto News

Tether Is About To Release New Audits, Says General Counsel

Tether is about to release the long-awaited new audits in a few months according to the General Counsel so let’s find out more in our latest Tether news today.

Those working behind the biggest stablecoin on the market, say that Tether is about to release new audits within months. Tether has been reluctant to hand over data to regulators but the controversial platform will release the audits soon. This is the third biggest digital asset by market cap that we are talking about and the general counsel says that it will release the audits within months but today, Stu Hoegner, said that the process can be expedited.

Tether is a stabelcoin that is pegged 1:1 with the US dollar which makes the coin’s value stable as opposed to the value of crypto like BTC. Tether Inc, claims that the coins are backed by US dollars held in reserves of about 80%, cash equivalents, secured loans, and bonds as well as other investments. The currency is the backbone of the crypto economy because of its huge trading volume and in the past day, $52.9 billion worth of the currency was traded which is far more than any other crypto. In Asia, the asset drives the market as it helps traders get access to BTC but it is also useful for Chinese capital flight.

The only problem is that some don’t think it is actually backed by real US dollars. A research paper released by the University of Texas Professor John Griffin back in 2018 said that Tether is used to manipulate the BTC market. Griffin followed up a new report in 2019 though its findings were disputed by other academics. The crypto company just settled a fraud investigation with the NYAG which said that the claims the company made that its virtual currency was fully backed by US dollars at all times, was a lie. A new audit would clear up this issue but Tether has been reluctant to hand over data to regulators.

Paolo Ardoino
Paolo Ardoino

Hoegner said that along with Paolo Ardoino, the coin is trusted by the market:

“More importantly, our 24-hour volume across exchanges, lately, is $45-50 billion, which dwarfs the competition. We believe the market has spoken. The market has shown its trust and confidence in Tether and its products.”

Circle, as the biggest competitor to Tether, issued sources of backing that underpin its cryptocurrency USDC. Back in May, Tether releases its reserves breakdown for the first time since 2014, and its executives claimed that there’s nothing funny behind how the crypto functions:

“We are leaders in transparency,” said Hoegner. “We are not just keeping up with rules but we are helping to shape them, and we are helping law enforcement and regulators globally.”

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