In a statement issued on Tuesday (30), Tether released a guarantee report that its USDT stablecoin is fully backed. In other words, supposedly 1 USDT is backed by 1 dollar.
O lifting conducted by the Moore Cayman accounting office is dated February 28.
According to Tether, the data ensures support and transparency of management with the market:
“We remain committed to being among the most transparent stablecoins. This last guarantee opinion – and our dedication to providing future reports – is a reflection of that commitment. ”
However, despite declarations about transparency, Tether never confirmed the backing of its issued USDT.
Analysis
According to the report, in February, the company reportedly held nearly $ 35.3 billion in assets.
In turn, the liability amount in the same period was US $ 35.2 billion. Of the total liabilities, approximately US $ 35.1 billion were related to the issue of USDT.
Thus, Moore Cayman points out that Tether’s reserves exceeded the amount needed to redeem the issued stablecoins, and points out:
“We believe that the evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our assurance opinion.”
Lack of details
Despite the company stressing that the report delivers transparency, there was no description of how USDT reserves were maintained.
In another moment, months ago, this topic was already signaled by the company’s critics. In the release of the reports from the Tether Rival Center, it was reported that the dollars were held in bank accounts.
When questioned by The Block on the matter, Tether’s general counsel, Stuart Hoegner, retained to comment only on the data being analyzed:
“All of our tokens are fully backed by Tether’s reserves.”
The executive also said that Tether “clarified the issue for years” and that it maintains cash reserves and their equivalents.
Reporting
According to Hoegner, the procedure adopted by the organization in the investigation is similar to that used by other companies that issue stablecoins:
“This includes independent examination of, among other things, bank and fund statements. In addition to blockchain data, gold counts, contracts and financial and other working documents obtained by third parties. ”
Also in March, Tether plans to issue another warranty report. In addition, every three months, the company must provide data about its reservation to the New York State Attorney’s Office (NYAG).
The reports are part of the agreement established with NYAG to finalize the lawsuit that the entity was filing against the organization, for alleged market manipulation.
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