Tether, the firm that used to create a billion tokens out of thin air, is suddenly keen to have a full audit of its reserves. Let’s dig a little deeper:
Prepared for the audit
Tether CEO Paolo Ardoino has stated that obtaining a full audit of Tether's reserves is the company's 'top priority'. Before that Ardoino has named Simon McWilliams, an audit veteran, as its new CFO. This indicated to me that Tether is preparing for the audit and has already employed an experienced expert to ensure a positive outcome.
Need of Audit
Tether will satisfy law enforcement agencies with "funds"; nevertheless, as a centralised firm, Tether needs to preserve investor confidence. Henceforth there is a need to demonstrate the transparency and dependability of its reserves. Tether is in talks with the 'Big Four' accounting firms: Deloitte, EY, PwC, and KPMG.
To stay ahead of its competitors
Tether's action comes after its stablecoin was banned in the European Union. Because of this ban, Tether is losing the European market to competitors such as its old rival USDC and new entrant RLUSD, which is also harming its US market. Hence as per my point, Tether is implementing a new strategy. Only time will tell what the strategy will be.
Originally Published at Wubits as thread
