- Tether has faced ongoing calls for greater reserve transparency, and incoming CEO Paolo Ardoino says the company plans to publish real-time reserve attestations to help restore trust after recent stablecoin failures shook the industry.
- Tether’s USDT stablecoin dominates the market but its reserves have drawn skepticism; some want more regular and detailed disclosures beyond the quarterly attestations Tether currently publishes showing excess reserves.
- Ardoino stated Tether will provide real-time reserve transparency soon, saying “We believe that open communication and strong financials foster trust and reliability and this is what the global community deserves.” This long-awaited transparency could help rebuild faith after 2022’s stablecoin crises.
Tether has faced ongoing calls for reserve transparency. Now, incoming CEO Paolo Ardoino says the company plans to publish real-time reserve attestations. This could help restore trust after regulatory scrutiny and stablecoin failures shook the industry in 2022.
Background on Tether’s Reserves
Tether’s USDT stablecoin dominates the market but its reserves have drawn skepticism. The company publishes quarterly attestations showing excess reserves. However, some want more regular and detailed disclosures.
Pressure Grows for Enhanced Transparency
Demands for transparency escalated after UST and USDC crises. Plus, Sam Bankman-Fried’s Alameda Research reportedly minted billions in USDT, raising questions about the stablecoin’s backing. While Tether maintains full reserves, many want audits and details to better evaluate risks.
Ardoino Commits to Real-Time Attestations
Ardoino says real-time reserve transparency is coming. He stated: “We believe that open communication and strong financials foster trust and reliability and this is what the global community deserves.” The move could help restore faith after 2022’s stablecoin failures.
Conclusion
Tether aims to rebuild trust through live reserve disclosures. This long-awaited transparency could provide clearer insight into the stablecoin’s backing. However, some may want further auditing and details beyond real-time attestations.
