On Monday, stablecoin issuer Tether (USDT) released its assurance opinion for Q2 of 2023, verified by BDO, an independent accounting firm. But questions remain about why the stablecoin issuer has not yet produced a full audit report. Does the company have something to hide?
The Consolidated Reserves Report (CRR), released on July 31, is a snapshot of the company’s assets as of June 30. BDO’s work reveals that Tether’s reserves remain extremely liquid, with 85% of its investments held in cash and cash equivalents.
Tether Once Again Avoids a Full Audit
If you believe the new attestation, Tether (USDT) appears to have excess reserves of about $850 million. Bringing its total excess reserves to approximately $3.3 billion at the end of Q2.
Tether’s consolidated total assets amount to at least $86,499,251,218, while its consolidated total liabilities come to $83,200,775,340, of which $83,178,020,411 relate to digital tokens issued. (All figures USD.)
In theory, an attestation confirms the accuracy of financial data. But it has a much narrower scope and requires only that the external company validate whether a particular statement is true. Whereas an audit thoroughly examines the entire financial state of a company.
Tether’s choice to continue to use attestations—and not audits—to prove its stability and solvency is controversial. After all, why not be as transparent as possible if there is nothing to hide?
The stakes are high, too. Tether is by far the most popular stablecoin and the third most popular cryptocurrency overall, according to CoinMarketCap.
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Author: Josh Adams
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