As Reuters reports, Tether has hired Italian accounting firm BDO Italia to authenticate its 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. Financial regulators in several countries have warned that stablecoins may pose risks to financial stability.
About two months ago, Tether’s Chief Technology Officer Paolo Ardoino reported that Tether has processed about $16 billion in redemptions. Due to the collapse in the crypto market, a large number of investors converted their holdings in Tether back into dollars. 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. Issuers of stablecoins in the US will face bank-like regulations and oversight. A draft bill related to this is being prepared. In some other countries, the scrutiny of firms associated with stablecoins is also being increased.
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)
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