Tether stablecoin is fully backed, says new assurance report

Tether stablecoin is fully backed, says new assurance report

Tether Holdings Limited, a company behind the world’s largest stablecoin Tether (USDT), has released an assurance opinion to confirm that Tether tokens are fully backed by its reserves.

In a statement shared on Twitter Tuesday, Tether provided the company’s Consolidated Reserves Report, or CRR, accompanied by an assurance report from accounting network Moore Cayman.

Our top trading bots

Signed on March 26, the accountant’s report intends to prove the accuracy of Tether’s CRR compiled on Feb. 28. “In our opinion, the CRR as prepared by the management of Tether Holdings Limited Group as of February 2021 at 11:59 PM UTC is presented in accordance with criteria set out therein and it, in all material respects, fairly stated,” the assurance opinion reads.

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

Moore Cayman noted that its assurance opinion is limited 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, including offshore jurisdictions like the Cayman Islands and British Virgin Islands, as well as Delaware, Hong Kong, the United Kingdom and others.

“Tether has always been fully backed, and the assurance opinion we made available today confirms it once again. As a leader in the growing cryptocurrency industry, we remain committed to being among the most transparent stablecoins,” Tether Holdings wrote.

"We do intend to release attestations periodically going forward," Stuart Hoegner, general counsel for Tether and cryptocurrency exchange Bitfinex, told Cointelegraph. He added that the CCR was executed on March 26, so it was not available until very late last week.

USDT's 1:1 peg with the U.S. dollar has long been the subject of some skepticism, with many questioning the validity of its backing. 

In February, Tether and its sister firm Bitfinex settled with the New York Attorney General’s Office over claims the firm misrepresented the degree to which USDT was backed by fiat collateral. As part of the settlement, New York regulators forced the firms to pay $18.5 million for damages as well as submit to periodic reporting of their reserves.

Continue reading about Cointelegraph
Ethereum’s ‘London’ hardfork set to go live on testnets starting June 24th
The hotly anticipated “London” Ethereum hardfork now has a set block height for three Ethereum testnets — a key penultimate step towards a full mainnet...
Nigeria’s central bank plans CBDC pilot launch before the end of 2021
Rakiya Mohammed, an IT specialist at the Central Bank of Nigeria (CBN) has announced that the apex bank is making efforts to float a central bank digital...
Dapp for upcoming Diem blockchain raises $4.5M in seed investments
Pontem Network, a decentralized application that seeks to connect Facebook’s Diem to public blockchains like Ethereum (ETH), has raised $4.5 million in...
Don’t blame crypto for ransomware
Recently, gas has been a hot topic in the news. In the crypto media, it’s been about Ethereum miner’s fees. In the mainstream media, it’s been about good...
BTC sinks below $40K, Bitcoin inflows to centralized exchanges surge
Bitcoin inflows to centralized exchanges have surged, prompting bearish speculation the crypto markets could be building up to a violent wash-out.Lex Moskovoski,...
Litecoin Falls 10% In Bearish Trade
Investing.com - Litecoin was trading at $355.994 by 20:55 (00:55 GMT) on the Investing.com Index on Tuesday, down 10.05% on the day. It was the largest...
6 Crypto-centric songs you may not have heard
While the cryptocurrency industry is mostly centered around technology and data, the people who inhabit our sector are not without their creativity. This...
Reports suggest Goldman Sachs is now offering Bitcoin derivatives
Investment banking giant Goldman Sachs has reportedly opened up futures trading on Bitcoin to Wall Street executives.According to Bloomberg Law, last month...
3 reasons Enjin Coin price surged by over 30% in a single day
The price of Enjin, the native token of the blockchain gaming and NFT-focused project, has surged by more than 30% in the last 24 hours.There are three...
Theta Network's token enters top 10 cryptos by market capitalization
THETA, the native token of the Theta Network — a decentralized blockchain-based video delivery network — has entered the top 10 cryptocurrencies by market...
Russia to Implement the “First” Guarantee System for ICO Investments
While Russian legislators are breaking their heads about the regulation of cyber assets, mining and blockchain in the state, the financial sector on par...
Bitcoin Surpasses $10,000 For The First Time in Two Weeks
Since the beginning of February bitcoin’s price started heading downwards, falling below the margin of $6,000 – the mark, which BTC had not seen since...
Israeli Diamond Exchange Issues Its Cryptocurrency
The Israeli Diamond Exchange began issuing its cryptocurrency - for settlements between dealers and investors. This should breathe new life into the industry,...
New Rhythm for Crypto: the Virtual Currency Girls
The popularity of cryptocurrency in the Land of the Rising Sun is gaining momentum. A new musical band called «Virtual Currency Girls» has appeared in...
Investing in Crypto Is a Good Opportunity for Millennials
The cryptocurrency market can turn out to be exactly what it takes to attract millennials to tradingThis opinion was expressed on the CNBC by a chief analyst...