Tether stablecoin is fully backed, says new assurance report

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

In an announcement shared on Twitter Tuesday, Tether supplied the corporate’s Consolidated Reserves Report, or CRR, accompanied by an assurance report from accounting community Moore Cayman.

Signed on March 26, the accountant’s report intends to show 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 quantity required to redeem the digital asset tokens as consolidated complete liabilities quantity to $35.2 billion, whereas consolidated complete belongings quantity to “at least” $35.three billion.

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

Moore Cayman is a supplier of audit companies to companies and funds in varied jurisdictions, together with offshore jurisdictions just like the Cayman Islands and British Virgin Islands, in addition to 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.

Tether Holdings didn’t instantly reply to Cointelegraph’s request for remark.

USDT’s 1:1 peg with the U.S. greenback has lengthy been the topic of some skepticism, with many questioning the validity of its backing

In February, Tether and its sister agency Bitfinex settled with the New York Attorney General’s Office over claims the agency misrepresented the diploma to which USDT was backed by fiat collateral. As a part of the settlement, New York regulators compelled the companies to pay $18.5 million for damages in addition to submit to periodic reporting of their reserves.