Tether (USDT), the largest stablecoin by market capitalization, is reportedly in talks with a Big Four accounting firm to conduct a full audit of its reserves.
Tether has long faced scrutiny over whether its USDT tokens are fully backed by equivalent reserves in cash, treasuries, or other liquid assets. This audit, if completed, could validate Tether’s claims and boost confidence in the stablecoin market.
Ascend’s Take
A successful audit could set a new standard for stablecoin transparency. If Tether undergoes a verified audit by a Big Four firm, it could lead to:
- Stronger trust from institutional investors
- Greater regulatory acceptance of stablecoins
- Pressure on competitors (like USDC and DAI) to undergo similar audits
However, if the audit exposes issues, it could cause instability in the crypto market, as Tether plays a crucial role in liquidity for crypto exchanges. Either way, this move signals that the era of unregulated stablecoins is coming to an end.
