Tether in Talks for Independent Audit

Stablecoin giant Tether is reportedly in discussions with a Big Four accounting firm for an independent audit, as per a report from Reuters on Friday.

The company, which operates from El Salvador, has faced challenges in securing an audit from a major accounting firm regarding the backing of its stablecoin. Tether’s CEO, Paolo Ardoino, mentioned the ongoing engagement with one of the top firms.

The Big Four includes PwC, EY, Deloitte, and KPMG.

Tether has yet to reply to Decrypt‘s request for comments.

The firm mints stablecoins—digital tokens pegged to assets like gold and dollars. Tether’s USDT is the most-traded cryptocurrency globally and ranks as the third largest by market capitalization, according to CoinGecko.

USDT claims to be backed by U.S. treasuries and other assets and operates across multiple blockchains, including Ethereum, Solana, and Tron. It is also set to launch on Bitcoin’s network soon.

Traders commonly use USDT and similar stablecoins to facilitate rapid transactions in the crypto market without relying on traditional financial systems, enhancing their appeal.

Despite its popularity, Tether has faced scrutiny from regulators over its transparency regarding reserve backing. The company has expressed a willingness to collaborate with a Big Four firm for audit purposes.

In 2021, following a two-year investigation by New York’s attorney general, Tether ceased operations in New York after being found to have made misleading statements about its token’s backing.

Currently, the company’s assets are custodied by Cantor Fitzgerald, led by New Commerce Secretary Howard Lutnick, amounting to billions of dollars.

Edited by James Rubin