Tether Plans To Publish Real Time Reserve Data In 2024



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The Newly Promoted Tether CEO Plans to Increase Transparency

The newly promoted Tether CEO, Paolo Ardoino, has stated that the stablecoin issuer plans to release real-time data on Tether reserves in 2024 in an effort to boost transparency.

Tether has often come under scrutiny over its reserves and was also fined $41 million by the Commodity Futures Trading Commission (CFTC) in 2021.

Tether’s Move to Boost Transparency

Stablecoins have been met with considerable skepticism from regulators and the crypto community. One example is USDT, which is the largest stablecoin in the crypto space but also one that generates considerable controversy. This is because its underlying backing has often been called into question. However, with Paolo Ardoino taking the reins from December 2023, the company has announced plans to publish real-time reserve data. Ardoino is already the face of Tether, thanks to his tenure as CTO. The decision was revealed in a report published by Bloomberg.

Tether’s Struggles With Transparency

According to the Bloomberg report, Tether lacks transparency in multiple aspects and not just in relation to its reserves. The lack of transparency impacts its public offices, the independence of its board of directors, and even its overall structure. As such, many view Ardoino’s decision to publish real-time data about its reserves as a significant boost to transparency.

The community has been concerned about Tether’s reserves ever since the Commodity Futures Trading Commission (CFTC) ordered the stablecoin issuer to pay $41 million in fines in October 2021. The fine was levied on Tether because of its claims that the US Dollar fully backed the USDT stablecoin. However, Tether maintained that the Commodity Futures Trading Commission found no grievance against the company and stated that the order recognized that issues related to Tether’s reserves were resolved.

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Tether also had to sign an $18.5 million settlement with the New York Attorney General over false claims regarding USDT backing. The AG’s office also ordered Tether to take steps to increase transparency.

“This resolution makes clear that those trading virtual currencies in New York state who think they can avoid our laws cannot and will not.”

In a separate statement released at the time, Tether stated that they had admitted to no wrongdoing and the settlement should be viewed as their desire to put the matter behind them.

“Under the terms of the settlement, we admit no wrongdoing. The settlement amount we have agreed to pay to the Attorney General’s Office should be viewed as a measure of our desire to put this matter behind us and focus on our business.”

However, despite the controversies, Tether’s circulation has continued to grow, even during the ongoing bear market. This comes against the backdrop of the circulation of the second-largest stablecoin, USDC, registering a considerable drop. Despite the news, some community members remain unconvinced, with one stating:

“Yeah, sure, but I bet it will just be a website showing some made-up numbers instead of the audit that was promised YEARS ago.”

Tether’s Latest Figures

In its latest quarterly financial attestation, Tether reported that it had $3.3 billion of reserves as it converted its commercial paper for US Treasuries. The attestation disclosed about $72.5 billion exposure to US Treasuries. This includes direct T-bill investments, repurchase agreements, and deposits in money market funds.

The attestation also revealed that the company’s bitcoin holdings increased in dollar value from $1.5 billion to $1.67 billion. However, it did not disclose the number of BTC tokens Tether held. The company also added that its operational profits exceeded $1 billion for the second quarter. In Q1, Tether had reported a net profit of $1.45 billion. Tether commands a market capitalization of $83.9 billion, making it the largest stablecoin by market cap.



### News source: cryptodaily.co.uk

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