Tether entrusts audit of asset reserves to Italian firm

Tether, one of the larger stablecoins, has appointed accounting firm BDO Italia to audit its asset reserves. The goal is to publish monthly instead of quarterly reports for this stablecoin by the end of this year. Tether says it maintains value through denominated returns in dollars. There is apprehension in the crypto market regarding these reserves. That’s why a few months ago there was a selloff in the crypto market after the steep fall in the stablecoin TerraUSD.

The British Virgin Islands firm that runs Tether publishes quarterly reports verifying its assets by accounting firms. Its reserves stood at about $82.4 billion at the end of March. Of this, $39 billion was invested in US Treasuries and about $20 billion in commercial paper. According to a Reuters report, Italian audit and assurance firm BDO Italia has a membership of BDO International Limited. At least two executives under Tether’s management are from Italy. Most of its team members are present in Europe and the Bahamas.

Stablecoins are cryptocurrencies that attempt to link their market price to a reserve asset such as gold or common currencies. These are more commonly used for digital transactions that involve converting virtual assets into real assets. USD Coin, Tether and Binance USD are some of the popular stablecoins, which are pegged to the US dollar. Stablecoin, a rapidly growing version of crypto, has emerged as a major medium of exchange. It is often used by traders to remit funds.

It is easy to exchange major stablecoins for bitcoin or other cryptocurrencies. Investors were hit hard by the recent fall in stablecoins. The UK Finance Ministry has decided to put in place a plan to deal with the downside in large stablecoins such as TerraUSD. Issuers of stablecoins in the US will face bank-like regulations and oversight. A draft bill related to this is being prepared. Senior Democrats and Republicans on the Financial Services Committee approved this draft. are finalizing.

(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)

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