The attachment reserve certificates must be carried out by a major European accounting firm

In a step towards greater transparency and alignment with international accounting standards, stablecoin operator Tether Holdings Limited...



In a step towards greater transparency and alignment with international accounting standards, stablecoin operator Tether Holdings Limited has engaged BDO Italia to perform regular reviews and certifications of its dollar reserves.

Tether, which operates the USDT stablecoin, officially started working with BDO Italia in July, the company revealed on Thursday. BDO Italia will be responsible for conducting an independent review of Tether’s stablecoin reserves to ensure that each unit of USDT is backed by cash or cash equivalents. Through BDO reviews, Tether aims to release public attestation reports monthly instead of quarterly. The attestations will include updates on the number of USDT tokens issued, as well as company reserves.

BDO Italia is the Italian branch of BDO Global, an international network of accounting firms headquartered in Zaventem, Belgium. BDO Global ranks among the five largest accounting firms in Europe in terms of total turnover. The company has offices in North and South America, Europe, the Middle East and North Africa, and the Asia-Pacific region.

Paolo Ardoino, Chief Technology Officer of Tether, said his company’s commitment to providing more transparency reflects its growing mandate beyond simply offering liquidity to crypto traders:

“The usefulness of Tether has become more than just a tool to quickly enter and exit trading positions, and therefore it is essential for us to evolve alongside peer-to-peer markets and payments.”

Tether has started publishing quarterly attestations of its stablecoin reserves in May 2021 as part of a settlement with the New York Attorney General’s office in February of the same year. Tether previously had passed several insurance tests conducted by local accounting firm Moore Cayman that its reserves exceeded its commitments.

Tether’s initial attestations showed that a significant portion of its reserves were backed by commercial paper. The company then announced its intention to reduce its commercial paper exposure to zero. It has been estimated that, by the end of July, Tether’s commercial paper holdings will be worth around $3.5 billionagainst $20.1 billion in March.

Related: Tether also confirms its weight behind post-merger Ethereum

USDT remains the largest stablecoin by market capitalization at $67.6 billion, according to CoinMarketCap. After a three-month downtrend, the USDT supply started to increase gradually into August, hinting at cautious optimism that the cryptocurrency market was turning a corner.