Tether announced this week it will audit its reserves for the first time. The move addresses long-standing scrutiny over its $141 billion in U.S. Treasuries reported as of Q1 2024. The company had never before undergone a full verification process.
Unverified Treasury Holdings
Tether's claim of holding over $141 billion in U.S. Treasuries since early 2024 has never been fully audited. The stablecoin giant provided only quarterly attestations instead. Critics saw this as a glaring gap in transparency for crypto's biggest dollar-pegged token.
A Profit in Rough Waters
The company reported a billion-dollar profit for Q1 2024 despite the crypto market slump that year. That quarter's performance remains Tether's last public financial snapshot. The Treasury holdings underpin those reserves, but their exact composition stayed unverified.
Breaking the Pattern
Wednesday's announcement ends years of resistance to full external checks. Tether confirmed the audit will cover its reserve composition. The company didn't specify which firm will conduct it or when results might appear. This shift comes amid growing regulatory pressure worldwide. The timing isn't great given recent market volatility. Tether did not say when the audit results would be released.
