Tether, the USDT stablecoin issuer has presented its first transparency report for its USDT supply and fully backed reserves in the form of assurance opinion from Moore Cayman. As a stablecoin issuer, the circulating supply of USDT must be backed by an equivalent amount of USD in reserves, however, Tether has often been marred into controversy for not offering third-party auditing reports to prove its claim until now.
The official comment from Tether read,
Tether has always been fully backed, and the assurance opinion we made available today confirms it once again. As Tether’s growth in the market continues to validate our business, we understand the public’s interest in this matter and are pleased to share this attestation as part of our ongoing commitment to transparency.
Assurance Opinion Confirms @Tether_to’s Reserves Fully Backed; Company Shares as Part of Ongoing Transparency Commitment
Our statement: https://t.co/uWHQWBxIYg
Assurance opinion: https://t.co/MqJCsSk8uD
— Tether (@Tether_to) March 30, 2021
Tether came under heavy criticism post-NYAG lawsuit against the firm for misappropriating of revenue in 2018 and during that ongoing court battle, the stablecoin issuer had changed its claims from 100% back to 70% USD backed, while claiming that the rest of the supply is backed by a portfolio of assets including Bitcoin.
NYAG settled the case with Tether last month with an $18.5 million fine and it was barred from offering its services or carry out operations from New York. Both the parties claimed victory in the case where Tether suggested authorities had nothing against them.
— Tether (@Tether_to) February 23, 2021
Can New Transparency Report Supreess Tether FUD?
The long-standing Tether FUD suggests that the stablecoin issuer prints USDT to pump Bitcoin price and it was one of the key reasons why they couldn’t provide evidence for their claims about 100% backed reserves. The recent assurance opinion from a third-party for sure adds to the credibility of the claims.
USDT is currently the stablecoin market leader with over 90% market dominance, while the likes of USDC and other stable coins have registered a rise in demand owing to the bull market, USDT is still the undisputed king.