Tether promises an audit will be done in “months”, while Paxos says USDT is not a true stablecoin

In a few months there will be an official audit of Tether, the most popular stablecoin in the worldaccording to the general adviser of the project.

The audit of the third largest digital asset in the world has been expected for several years and increasing regulatory pressure seems to have accelerated the process.

in a rare interview with the media on CNBC, Tether CTO Paolo Ardoino and General Counsel Stu Hoegner Received Urgent Questions on the Topic of USDT Support and Transparency.

Hoegner answered the question by saying:

“We are working on performing financial audits, which no one else in the stablecoin industry has done yet.”

Hoegner added that the company hopes to be the first to do so and that the audits will be in “months, not years”. He claimed that Tether was backed one-to-one with its reserves, but admitted that those reserves were not all in US dollars. According to Hoegner, Tether’s reserves are heavily dollar-weighted, but also include cash equivalents, bonds, secured loans, crypto assets and other investments.

The current market capitalization of USDT is 62 billion, according to the report of Tether transparency. It has increased by 195% since the beginning of the yearbut has lagged rivals USDC and BUSD in terms of growth.

Circle released its own reservations disclosure report on July 21, revealing that 61% of USDC reserves were held in cash and cash equivalents the remainder being in commercial paper accounts, treasury bills and bonds.

Paxos at the pool

In a related development, rival stablecoin company Paxos attacked both Tether and Circle in a blog post on July 21, stating that they “are not extensively monitored by any financial regulator”.

“Neither USDC nor Tether are regulated digital assets, for the simple reason that neither token has a regulator. In fact, neither USDC nor Tether tokens are “stable coins” other than by name.

Paxos revealed that 96% of its own stablecoin reserves are in cash or cash equivalents.

Attached revealed an outage of its USDT support for the first time in May, following heightened scrutiny from U.S. lawmakers. The company has been reporting regularly on its reserves since reached an agreement with the New York Attorney General’s Office in February.

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