In a move towards better transparency with international accounting standards, well-known stablecoin operator Tether Holdings Limited has teamed up with BDO Italia to conduct regular review and certification of its reserves.
Tether, which operates the USDT stablecoin, officially started working with BDO Italia in July. As the company revealed Thursday, BDO Italia will be responsible for an independent audit of Tether’s stablecoin reserve to ensure that USDT is backed by cash or cash equivalents, which Tether aims to release its certification report to the public. every month instead of quarterly The certification will include updates on the number of USDT tokens issued and the company’s reserves.
BDO Italia is the Italian entity of BDO Global, an international network of public accounting firms. which is headquartered in the city of Zaventem Belgium by BDO Global is ranked as one of Europe’s 5 largest accounting firms based on total revenue. and has offices in North and South America, Europe, the Middle East, and North Africa, and the Asia-Pacific region.
Tether’s chief technology officer, Paolo Ardoino, said this was his company’s promise to offer greater transparency. And it reflects the increased authority in addition to offering liquidity to crypto traders:
“Tether has grown beyond being just a tool for quickly entering and exiting trading positions. It is therefore important that we operate alongside the peer-to-peer marketplace and the payments marketplace.”
Tether began publishing quarterly confirmations of its stablecoin reserves in May 2021 as part of a deal with the New York Attorney General’s Office in February of the same year.
Tether’s preliminary docs show a large portion of the reserves. Backed by commercial paper, the company later announced plans to reduce commercial paper to zero. And it is estimated that by the end of July, Tether’s commercial paper holdings will be worth about $3.5 billion, down from $20.1 billion in March.
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