Tether Holdings, the company behind the world’s most significant stablecoin, Tether (USDT), is readying to raise the bar on financial transparency. According to reports from Bloomberg, Paolo Ardoino, Tether’s newly promoted CEO, has disclosed that the company aims to publish reserve data in real-time by 2024. Currently, the firm updates this information at least once daily and also releases monthly and quarterly reserve reports.
This development comes at a time when the cryptocurrency industry faces heightened scrutiny over the adequacy and safety of stablecoins. Tether, which has faced its share of controversy, including a $42.5 million fine from The Commodity Futures Trading Commission (CFTC) in 2021, has displayed remarkable resilience. In fact, the stablecoin has not just survived but thrived, reporting a 5.7% increase in assets to $86.5 billion in its second quarter. Moreover, operational profit skyrocketed by 30% over the past quarter, crossing the $1 billion mark.
Financial milestones amid challenges
Despite previous setbacks, Tether’s latest attestation by the accounting firm BDO indicates a stable financial position. The firm boosted its excess reserves by $850 million, totaling up to $3.3 billion. Additionally, Tether reported having $72 billion worth of indirect exposure to United States Treasuries, held both through money market funds and as collateral for its overnight repo operations.
Tether has notably succeeded in growing its business in a challenging environment. After stopping stablecoin lending entirely in December 2022, the company resumed this service and observed a surge in lending activities throughout 2023. These financial milestones indicate Tether’s ability to navigate market complexities effectively.
The move to real-time data publishing also dovetails with an ongoing shift in leadership. Paolo Ardoino, who has been serving as the firm’s Chief Technology Officer, was promoted to CEO recently, succeeding Jean-Louis van der Velde, who has transitioned to an advisory role. Ardoino’s latest announcement thus appears to mark the start of an era focusing keenly on elevating the firm’s transparency to a real-time standard.
The increase in transparency is seen as a crucial step in garnering trust in a sector that is often viewed with skepticism. By moving to real-time data publishing, Tether aims not only to solidify its dominant market position but also to set an industry standard that could serve as a benchmark for other stablecoins.
The stablecoin issuer’s decision to update its reserve reporting frequency serves as an impactful message to both the market and the regulators. While the cryptocurrency market continues to experience volatility, Tether’s commitment to enhanced transparency may indeed be a defining moment in the journey toward more responsible financial practices within the digital asset space.