The company behind the world’s largest stablecoin disclosed a report by aiming to show “transparency commitment” to clarify whether Tether’s reserves are fully backed or not. Tether Holdings Limited published its “Assurance Opinion” issued by an auditing firm based in the Cayman Islands.
Accounting Firm Recognizes Two Ongoing Legal Cases
According to the statement, Tether Holdings Limited stated that USDT tokens have “always been fully backed.” The report was signed by Moore Cayman on March 26, 2021, and compiled on February 28, 2021 “at 11:59 PM UTC.”
Per the accountant’s report, consolidated total assets amount to at least $35,276,327,156, which, according to Tether Holdings Limited, exceeds the total amount required to redeem the tokens:
Consolidated total liabilities amount to $35,154,786,806 of which $35,111,966,857 relates to digital tokens issued. The group’s consolidated assets exceed its consolidated liabilities.
Still, Moore Cayman highlighted the two ongoing civil litigation proceedings that the holding is currently facing, but “any contingent liability in respect of these proceedings has not been accrued.”
XAUT Wasn’t Subject of the Assurance Opinion, Says Moore Cayman
Together with the report, Tether Holdings Limited issued a comment in regards to the findings:
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.
Also, the accountant’s report mentioned tether gold (XAUT) token, clarifying that its findings were only based on USDT, as XAUT “has not been subject to the scope of our assurance engagement and, accordingly, we do not express an opinion or provide any assurance on it.”
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