Stablecoins under the spotlights: Tether breaks standard with external audit
Tether, the company behind the world’s largest stablecoinUSDTHe announced an unprecedented initiative that promises to bring more transparency to the sector: the hiring of audit giants.KPMG e PwCto analyze your reserves, which total$184 billionThe decision, communicated amid global regulatory pressures, marks a turning point in the history of stable currencies and may have direct reflections on the Brazilian cryptocurrency market.
Why is Tether’s audit a historic milestone?
Historically, Tether has faced criticism due to the lack of transparency in its reserves. The company, which issues USDT — used by millions of investors for crypto market operations — has already been the subject of regulatory investigations in the United States and Europe. In 2021, Tether paid a fine of$41 million à Commodity Futures Trading Commission (CFTC)They claimed that their reserves were not 100% traded in dollars.
The new audit, however, represents an unprecedented effort. For the first time, two of the "Big FourKPMG, headquartered in Canada, and PwC, with operations in Brazil, will analyze not only the amount of dollars in cash, but also the assets that make up the USDT shelf.Financial Timesthe audit should be completed by the end of 2024, which couldIncrease the trust of investorsIn an area already filled with suspicion.
The initiative arises at a time when Brazil consolidates itself as one of theThe largest cryptocurrency markets in Latin AmericaData fromREUTERSThe report indicates that the country has seen growth in36% in the volume of stablecoins tradingin 2023, with USDT accounting for more than 80% of these transactions. The transparency of Tether therefore can directly influence institutional adoption in the country, where exchanges such as theThe Bitcoin Marketand aFoxbitThey already offer USDT as the main trading pair.
Impact on the market: what to expect from prices and regulation?
The news has already provoked reactions in the crypto market. The day after the announcement, the price of the USDTined its parity with the dollar, but market analysts, such as theCoinGeckoIt should be noted that the audit couldReduction of volatilityIn addition, the initiative may pressure other companies in the industry — such as theThe Circle (USDC)and aBinance USD (BUSD)- to follow the same path by intensifying competition for transparency.
In Brazil, the news arrives at a crucial moment.PL 4.401 and 2021, which seeks to regulate cryptocurrencies in the country, is under discussion in Congress. Tether’s audit can serve asStatement by Brazilian regulatorsTo justify the need for stricter rules for stablecoins, especially those issued by foreign companies.The Federal RecipeHe has already signaled that he may require proof of lasting for stable currencies operating in the country.
Another point of attention is the impact on Brazilian exchanges.With the audit, Tether couldReduce the risk of freezing, as happened in 2022, when the company encountered difficulties in honouring withdrawals amid a liquidity crisis. For the Brazilian investor, this means more security in operations that depend on USDT, such asBitcoin, Ethereum and DeFi tokens.
Transparency or Marketing? The Tether Challenge
Despite the good initial reception, Tether still faces skepticism. The company has already conducted partial audits in the past, but never with the level of detail promised now. By 2022, KPMG had been hired for a limited audit, but the report was criticized for not including all of the company’s assets. Now, with PwC as co-auditor, the expectation is that the process will be more rigorous.
For the Brazilian market, the news is especially relevant because USDT is the most traded stablecoin in the country.by BitValor, the daily trading volume of USDT in Brazil exceedsR$ 2 billion, representing about 60% of all transactions with stablecoins. If the audit confirms the solidity of the reserves, trust in USDT couldIncrease the local marketAttracting new institutional investors.
However, critics warn that the audit does not solve structural issues. Tether still relies onNon-liquid assets(such as cryptocurrency-backed loans) to make up part of your reserves, which may raise doubts about your ability to honor large-scale withdrawals.The company, in turn, argues that these assets are safe and that audit should clarify this point.
Conclusion: an important but not definitive step
Tether’s decision to submit its reservations to an external audit with two of the largest companies in the industry is undoubtedly a breakthrough to the stablecoins market. For Brazilian investors and enthusiasts, the initiative can bring more security and reduce the risks associated with using USDT in daily operations. However, it is important to remember that audit does not eliminate all risks in the sector and that transparency should be seen as a continuous process.
In Brazil, where the regulation of crypto assets is still under discussion, the news reinforces the importance of clear rules for stablecoins.In the meantime, investors should closely follow the results of the audit and assess how it will impact not only Tether, but the entire crypto ecosystem.One thing is certain: the Brazilian market, increasingly relevant in the global scene, cannot ignore this move.