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Tether, the USDT stablecoin issuer, has presented the first disclosure report for its USDT supply and fully backed reserves in the form of a Moore Cayman guarantee opinion. As a stablecoin issuer, the circulating supply of USDT must be backed by an equal volume of USD in reserves; however, Tether has been dogged by criticism for failing to have third-party auditing reports to back up the assertion 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 fire when the company was sued by the New York Attorney General for misappropriating revenue in 2018. During the pending legal case, the stablecoin issuer adjusted its claims from 100 percent to 70 percent USD backed, thus maintaining that the remainder of the stock is backed by a pool of properties like Bitcoin.
Tether was banned from selling its services or conducting activities in New York after the NYAG settled the lawsuit with it last month with a $18.5 million fine. In the situation where Tether believed officials had nothing against them, both sides claimed victory.
— Tether (@Tether_to) February 23, 2021
Can New Transparency Report Supreess Tether FUD?
Tether FUD has long suggested that the stablecoin issuer prints USDT to boost Bitcoin prices, which was one of the main reasons they couldn’t provide evidence for their claims of 100 percent backed reserves. The new confirmation opinion from a third party certainly adds to the statements’ legitimacy.
Although USDC and other durable coins have seen increased demand as a result of the bull market, USDT remains the undisputed market leader.