The latest independent audit proves that reserves fully back tether’s USDT as the consolidated assets are more than consolidated liabilities.
Stablecoin provider Tether continues to offer more evidence that its reserves fully back the USDT coins in circulation. Now, Tether has availed an audit report from Moore Cayman, headquartered in the Cayman Islands, affirming that the firm’s reserves back the USDT tokens in circulation.
In its recent accounting report for the period ending 31 March 2021 and made public on Thursday, the accounting firm affirmed that Tether’s total assets are more than its liabilities. The report also affirms that Tether releases its Consolidated Reserve Reports and accompanying assurance reports every quarter.
“In our opinion, the Consolidated Reserves Report by the management of Tether Holdings Limited group as of 31 March 2021 at 11:59 PM UTC, is presented under the criteria set out therein and is, in all material respects, fairly stated,” says the report.
According to the report, Tether’s overall value of its assets amounts to $41,017,565,708, while its liabilities are valued at $40,868,295,798, where $40,855,204,950 is linked to the total amount of coins issued.
A month earlier, Moore Cayman conducted a similar audit and concluded that the reserves fully backed that issued USDT. Tether’s value of its assets amounted to $35.3 billion during that time, while the liabilities were valued at $35.2 billion.
For a long time, Tether has faced backlash regarding whether its dollar reserves fully back its issued USDT tokens. The recent Moore Cayman’s report indicates that the firm is fully committed to fulfilling its obligations. In February, the firm agreed to produce reports about its reserves after being fined $18.5 Million by the New York Attorney General’s office. Tether was accused of misrepresenting the amount in its reserves backing the issued USDT by the New York financial authorities.
Tether hit a crucial milestone at the start of the week when its market capitalization surpassed $50 billion amid the surging number of stablecoins buoyed by the recent crypto bull run. This implies that currently, there are over $50 billion USDT in circulation.