Tether wants to dispel doubts, preparing for a series of audits of his reserves

USDT - Tether - technology director of stablecoin issuer Paolo Ardoino announced that he is preparing a series of audits with a number of major specialized companies. Are new clouds gathering over the largest stablecoin on the market or does it want to ensure the transparency of its reserves?

Do not miss: The best stockbrokers (brokers) in Europe and the best broker in the Czech Republic in 2022

Tether is preparing for several audits

IN tweet Tether has announced its intention to hold a round of consultations with some of the leading consulting firms in the coming days. Many immediately began speculating that the recent market downturn and the collapse of Terra's stablecoin could also have put Tether in trouble and now they are trying to fix it.

In fact, in just one week, stablecoin faced record withdrawals of $ 10 billion, about 12 % of Tether's entire circulation. It is one of the largest money withdrawals in history, the second after the $ 16 billion withdrawal suffered by Washington Mutual Bank, which bankrupt it in 2008.

On May 12, Tether lost parity with the dollar for several hours and slid to $ 0.95, causing panic in the markets, but at the end of the day it regained five.

In an interview with Euro money magazine, Ardoino said:

„Byli jsme vystaveni zátěžovému testu, ve kterém nemůže uspět ani banka a obstáli jsme na výbornou.“

In fact, according to the CTO, bearish speculation is circulating about stablecoin, which so far seems to be reflected. Continued:

"We showed that in the worst case scenario - when Terra collapsed, the whole crypt market fell apart and the stock market fell - we received a ton of requests for withdrawals and met them within minutes."

Doubts about Tether's cash reserves

The problem over which the world's most important stablecoin by capitalization, after Bitcoin and Etherium, is still falling, is the size of Tether's cash reserves. The next planned audits are said to focus on this issue.

Ardoino, who has been working to provide assurance on the company's reserves for some time, said Tether had reduced its holdings of commercial securities from $ 40 billion to $ 15 billion over the past eight months. In addition, there was a greater shift in reserves towards securities with maturities from zero to three months.

According to some, these audits also serve to publish and expand the list of banks with which Tether works, which are allegedly concerned about rumors and regulators' investigations about the company, which is often accused of providing bad or incomplete financial information.

You might be interested in: Where to buy bitcoin and cryptocurrencies

Interesting events for our readers

Binance

Trade with up to 60% off fees and a $600 bonus

Open an account Review

Phemex

Free bonus up to $ 2,500 upon registration and deposit

Open an account Review

Bybit

Free bonus up to 3650 USD after registration and deposit

Open an account Review

All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.