USDT is Fully Backed; Report Confirms as Part of Tether’s Transparency Commitment
The consolidated assets of Tether exceed its consolidated liabilities, states the accounting firm.
Tether is finally getting the official confirmation that USDT is fully backed.
“Assurance Opinion Confirms Tether’s Reserves Fully Backed; Company Shares as Part of Ongoing Transparency Commitment,” states Tether as part of their settlement with New York Attorney General's (NYAG's) Office.
The report from accounting firm Moore Cayman dated Feb. 28 states that Tether's consolidated assets exceed its consolidated liabilities.
According to the report, consolidated total assets amounted to nearly $35.3 billion, and the consolidated total liabilities amounted to $35.2 billion, $35.1 billion of which were related to stablecoins issued.
The assurance opinion basically confirms that the information in the Consolidated Reserves Report is accurate.
“Tether has always been fully backed, and the assurance opinion we made available today confirms it once again,” said Tether.
The report is based on a consolidated reserves report (CRR) that Tether has provided to the accounting firm.
Moore Cayman Accounting Firm
“We believe that the evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our assurance opinion.”
“Tether Holdings Limited's management is responsible for its assertions in its CRR that relate to Tether Holding Limited's consolidated assets to back its consolidated liabilities issued.”
With more than $42 billion in total circulating supply, Tether is the largest and dominant stablecoin in the crypto market. In 2018, Tether had released a report from law firm Freeh, Sporkin & Sullivan LLP attesting its USD reserves after dissolving its relationship with audit firm Friedman LLP.
A few years back, Tether made changes to its website and had mentioned that,
“every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”).”
Now, much like USDC and Paxos, both of which release monthly attestations in line with U.S. standards, USDT will also be providing quarterly reports detailing its reserve composition for the next two years.