Key Takeaways:
- Tether contracts KPMG to conduct its initial full financial audit of the USDT reserves
- Post-audit PwC assists with internal upgrades to the system
- The move is aligned with the expansion plans and possible raising efforts in the US.
Tether is also headed to complete financial transparency as it prepares to further invest into regulated markets. The stablecoin issuer is taking a major step by initiating its first complete audit.
Read More: Tether Hires Big Four for First Full Audit, Boosting Trust
Tether Engages KPMG for Full Audit
Tether has selected KPMG to conduct its first full financial statement audit. This is a change of its former method of utilizing periodic attestations.
The audit will not be an ordinary confirmation of a reserve. It is expected to review assets, liabilities, and internal controls across the company’s operations. PwC has also been brought in to prepare internal systems. This will involve setting the reporting standards and making sure that the auditing standards are ready.
Read More: Tether Gold Unveils Scudo: 1/1000 XAU₮ Unit Unlocks Micro Gold Transfers On-Chain
USDT’s Scale Raises the Stakes
USDT is the biggest stablecoin in the market having approximately $185 billion in circulation. It has been popular on exchanges and DeFi as a liquidity asset.
So far, Tether has published monthly attestations through BDO Italia. These reports confirmed reserve backing but did not provide a full financial breakdown. Complete audit involves an increased degree of verification. It demands further examination of saving make-up and financial set-up.
Expansion Plans Drive the Shift
The audit is announced at a time when Tether is ready to grow in the United States. The emergence of new regulations is placing more pressure on the issuers of stablecoins to comply with higher standards.
A certified audit would assist Tether to place itself in such an environment. It can also assist the company in proceeding to do a possible fundraising round. Reportedly, Tether considered raising up to $15 billion – $20 billion, but investors are still worried about valuation risk and regulatory risks.
Addressing Longstanding Concerns
Since being launched, Tether has been subject to numerous questions regarding transparency. In 2021, the company was fined by the Commodity Futures Trading Commission $41 million on what was said about its reserves.
From Attestations to Full Disclosure
The shift to a full audit can be considered as a strategic step. Instead of announcing information with limited level, Tether is opening its all financial structure to comprehensive review.
The company also plays an important role in global finance by holding U.S. Treasuries. This helps reinforce the link between the crypto market and the traditional financial system. By auditing by KPMG and internal preparation process conducted by PwC, Tether is stepping closer to traditional standards of financial institutions.
The post Tether Selects KPMG for First Full USDT Audit appeared first on CryptoNinjas.
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