Tether Holdings Limited. the company behind stablecoin Tether (USDT), has disclosed the coin’s coverage. Auditor Moore Cayman has investigated the financial situation.
Stablecoin Tether coverage
Tether USDT is by far the most well-known and traded stablecoin within the international crypto world. The advantage is that the transactions are processed directly via the blockchain. Traders would like that because the bitcoin price fluctuates quite a bit.
Get started at Bitvavo and pay no trading fees for your first purchase up to € 1,000
In addition, the necessary leverage trading pairs are active at exchanges such as Binance and OKEx.
Inside and outside the market, however, there are serious doubts that every USDT is 100% backed by dollars. To clarify this shadow, the trading company is now attempting to be more transparent.
In the so-called Consolidated Reserves Report (CRR) accompanied by an accountancy statement from Moore Cayman. The financial situation until February 28, 2021 has been examined and approved by this external party.
One of the conclusions is that Tether’s cash reserves are greater than the $ 35.2 billion USDT circulating in the market. This cash position is “at least $ 35.3 billion.”
Moore Cayman is an auditor specializing in companies that have relocated to places such as the Cayman Islands, British Virgin Islands, as well as Hong Kong and the United Kingdom.
Tether Counselor Stuart Hoegner promises that the company will periodically issue financial reports. That also applies to the Bitfinex which falls under the same umbrella iFinex.
Deal in New York
In late February this year, Bitfinex and Tether settled with the New York Attorney General (NYAG) after a charge of financial mismanagement. In addition to paying a one-time fine of $ 18.5 million, openness about the financial health of both companies is also part of the agreement. With these periodic reports, Tether meets this requirement.