Tether Signs Up BDO Italia for its Stablecoin Reserve Attestation
Tether Holdings Ltd, the blockchain technology firm in charge of the USDT stablecoin, announced today it has onboarded the services of BDO Italia to help issue assurance and attestation reports of its stablecoin reserve.
BDO is ranked the fifth largest accounting firm in the world, and the linkup with Tether is a step further in helping the stablecoin issuer solidify its stance in relation to its transparency policies.
Tether said it will be working towards a complete and thorough auditing of its business, a move it said will be in the nearest future.
Over the years, Tether has crossed paths with regulators as it concerns the authenticity of its claims that all of the Tether it issued are 100% backed by the United States Dollar.
While the firm has earned distrust over this claim, it has been doing all within its powers to maintain a clean record.
The company now has a transparency page on its website where it publishes its assets and liabilities backed up in three currencies and gold.
BDO Italia is not a new client to the company, as the firm helped in preparing its quarterly attestations in July. With the latest partnership, Tether plans to start issuing monthly attestations.
TerraUSD Collapse Fueled Intense Stablecoin Scrutiny
The collapse of the algorithmic stablecoin, TerraUSD (UST) back in May when it depegged from the USD resulted in more scrutiny from both regulators and the broader crypto market.
For stablecoin issuers like Tether who have previously been under scrutiny per the accuracy of its balance sheet, more effort was required to maintain trust across all levels.
Among the pain points that Tether has tried to adjust its books is in the aspect of its exposure to Chinese Commercial Papers (CCP). While it revealed recently that it has cut its exposure to CCP, the firm said it will reduce exposure to all commercial papers before the end of the year.
With Circle, the issuer of USDC stablecoin receiving its attestation from Grant Thornton, the onboarding of BDO Italia will further help Tether establish its status as a key stakeholder that can be trusted.
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