Tether promises an audit in 'months' as Paxos claims USDT is not a real stablecoin
July 22, 2021. Summarized by summa-bot.
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A long-awaited audit for leading stablecoin Tether could be just months away according to general counsel Stu Hoegner.
There will be an official audit of the world’s most popular stablecoin Tether within months according to the project’s general counsel.
In a rare mainstream media interview on CNBC, Tether CTO Paolo Ardoino and general counsel Stu Hoegner were asked some pressing questions on the subject of USDT’s backing and transparency.
He stated that Tether is backed one-to-one with its reserves but admitted that those reserves were not all US dollars.
According to Hoegner, Tether’s reserves are heavily dollar-weighted but also include cash equivalents, bonds, secured loans, crypto assets, and other investments.
In a related development, rival stablecoin company Paxos took a swipe at both Tether and Circle in a July 21 blog post claiming that they are “not comprehensively overseen by any financial regulators. ”
“Neither USDC nor Tether is a regulated digital asset, for the simple reason that neither token has a regulator.
In fact, neither USDC nor Tether tokens are ‘stablecoins’ in anything other than name. ”