Tether, the provider of tokenized fiat currencies on the Bitcoin blockchain, has released a report from Freeh Sporkin & Sullivan, LLP (FSS) confirming that all Tethers (USDT) in circulation are sufficiently backed by US dollar (USD) reserves. Tether’s USDT is a stablecoin that depends on full USD backing to maintain its peg.
The FSS report, based on a random date balance inspection and a full review of relevant bank account documentation, confirms that the Tether $2.54 billion bank balance, exceeds the 2.53 billion Tethers circulating as of June 1, 2018.
CEO at Bitfinex and Tether
“Despite speculation, we have consistently stated that Tether is backed by USD reserves at or exceeding the Tethers in circulation at a given moment, and we’re glad to have independent verification of this to answer some of the questions posed by the public. We are by no means done with our efforts to promote increased transparency at Tether. We are planning to build on this report moving forward and, despite the challenges of applying current accounting and assurance standards to cryptocurrency clients, we continue discussing these issues with potential audit partners.”
Tether engaged the Washington, DC-based law firm in March to conduct an independent review of its bank account balances. The law firm was granted full access to all relevant bank and account documentation and selected a random date for review without Tether’s knowledge or involvement. On that review date, FSS examined its bank balances and compared it to Tethers in circulation. FSS selected June 1, 2018, as its random review date to review Tether’s bank balances.
