Market Analysis

Is Tether Really Completely Backed By USD In The Ratio 1:1.

Tether Holdings Limited, a firm behind the world’s leading stablecoin Tether [USDT], has revealed an assurance opinion to verify that Tether tokens are fully backed by its reserves.

Within an official statement shared on Twitter earlier on Tuesday, Tether provided the company’s Consolidated Reserves Report, or CRR, amid an assurance report from accounting network Moore Cayman.

Signed earlier on 26th March, the accountant’s report intends to prove the accuracy of Tether’s CRR compiled on 28th Feb. “In our opinion, the CRR as prepared by the management of Tether Holdings Limited Group as of February this year at 11:59 PM UTC is presented in accordance with criteria began therein and it, altogether material respects, fairly stated,” the reassurance opinion reads.

The report goes on to state that Tether’s reserves for USDT stablecoin exceed the quantity required to redeem the digital asset tokens as consolidated total liabilities amount to $35.2 Bln, while consolidated total assets amount to “at least” $35.3 Bln.

Moore Cayman outlined that its assurance opinion is restricted to USDT as information covering Tether’s gold-backed XAUT stablecoin “has not been subject to the scope of our assurance engagement.”

Moore Cayman is a provider of audit services to firms and funds in various jurisdictions, along with offshore jurisdictions just like the Cayman Islands and British Virgin Islandsalong with the Delaware, Hong Kong, the U.K. & others .

“Tether has always been fully backed, and therefore the assurance opinion we made available today confirms it once again. As a pacesetter within the growing cryptocurrency industry, we remain committed to being among the foremost transparent stablecoins,” Tether Holdings explained.

“We do shall release attestations periodically going forward,” Stuart Hoegner, general counsel for Tether and cryptocurrency exchange Bitfinex, added. He further concluded that the CCR was executed on 26th March, so it had been not available until very late last week.

USDT’s 1:1 peg with the USD has long been the topic of some skepticism, with several questioning the validity of its backing.

Also earlier in the month of February, Tether and its sister firm Bitfinex settled with the NY Attorney General’s Office over claims the firm misrepresented the degree to which USDT was backed by fiat collateral. As a part of the settlement, the NY regulators forced the firms to pay $18.5 Mln for damages along with periodically reporting of their reserves.

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