Tether hired KPMG for historic USDT audit and accelerates regulatory expansion in the US

In a historical milestone for the cryptocurrency market, aTetherby StablecoinUSDT— the world’s third largest cryptocurrency in market capitalization — announced this week the contract of theKPMGOne of the “Big Four” in the accounting sector.First complete and independent auditThe move, widely expected by the market, comes after years of charges for greater transparency and is accompanied by the hiring of PwC to modernize its internal systems.Regulatory approval in the United StatesUnder the controversialGenius ActThey are looking to regulate stablecoins.

Unprecedented transparency in the world of stablecoins

Since its launch in 2014, USDT has faced recurring criticism about theLack of complete and independent auditsThough Tether has published periodic reservation reports since 2022, these documents were signed by smaller companies and did not meet the same standards as major international audits.Apple, Microsoft and JPMorganIt represents anUnprecedented gesturein the stablecoins ecosystem, a segment that already moves more than$150 billion per dayin global transactions.

According to information provided byThe Financial Times (FT)The audit will not be limited to verifying the ballast in dollars, but will also examine theDistribution of assets that make up the reserves, including U.S. Treasury bonds, cash and other financial instruments.DecryptedThey say that the measure canReducing the risk premiumassociated with the USDT, which currently operates with a discount of about0.1% to 0.3%against the dollar on global exchanges — an indicator of residual distrust.

Tether also announced that aPwCAnother giant of the audit was hired.Modernize your accounting and compliance systemsIn addition to this, the company is preparing the ground for future launches of regulated products.$600 million in private funding rounds this yearTry to raise up$1.5 billion in a new round of investmentsAccording to reports published byCointelegraphPart of these resources should be targeted to expand its operations in the U.S., where regulation of stablecoins is increasingly urgent.

GENIUS Act and the race for regulation in the US

O Genius Act(Sign forGuaranteeing Environments for National Stablecoins to Unify Standards ActThe draft law, proposed in 2023, aims to create aClear regulatory framework for stablecoins in the US, requiring issuers such as Tether to maintain auditable and transparent reservations.Al the project is still being processed in Congress, the company has already moved its parts to anticipate possible regulatory changes.

For the Brazilian market, this movement is relevant.The second largest stablecoins market in Latin AmericaIn Argentina, according to theChainalysisUSDT responds to more than80% of all stablecoins transactions in the countryAccording to aThe Federal Recipe, being widely used for protection against inflation, international transfers and even as a guarantee in cryptocurrency credit operations. Tether’s regulatory approval in the US couldIncreasing institutional confidenceIn Brazil, encouraging more companies to use USDT in their operations, as already do giants likePayment Market, BTG Pactual and Nubankin their arms of DeFi and tokenization of assets.

Additionally, Tether’s initiative may push other stablecoins issuers, such asUSDC (Circle) and DAI (MakerDAO)“We will continue to follow the example and seek stronger audits, benefiting the ecosystem as a whole. “transparency is the main driver of institutional adoption,” he said.by Fernando Ulrich“If Tether can prove that its reserves are solid, this can open doors for more Brazilian investment funds and companies to operate stablecoins in a regulated way.”

Impact on the market: stability or new wave of distrust?

Despite the optimism generated by the audit, analysts warn that the market may react in a mixed way.Boost the USDT price and reduce its volatility, since confidence in stablecoins is directly proportional to the credibility of their reserves. On the other hand, some investors may see auditing as aTrying to ‘wash the image’Tether, who has already faced fines$41 millionIn 2021, he was charged with market manipulation and omission of information.

Another point of attention is theDevelopment of decentralized stablecoinsAs theby DAI, which do not rely on centralized companies to secure their last. The DAI, for example, is lastreated on collateral in cryptocurrencies, such as Ethereum, and has already surpassed the mark of$5 billion in circulation“Tether is running against time to adapt to a market that increasingly values decentralization and native transparency,” he said.by Thiago CésarAnalyst of DefiHashdex.

In the global markets, the news came at a time of high volatility, with Bitcoin again testing the mark.$60 thousandWhile the Bitcoin ETFs registeredNet output of $171 millionOn the 18th of June, according to aCointelegraphInvestors fearedThe escalation of the conflict between Iran and Israel, which could impact traditional markets and, by reflection, cryptocurrencies. In this context, Tether’s audit news can act as aRespect for risk aversionAn incentive to stablecoins holders.

The future of USDT in Brazil and the world

For Brazilian users and investors, the coming weeks will be crucial. Tether is expected to publish the first results of the audit in 2024, and the company is expected toExpand your presence in the local market, since Brazil is one of the few countries where USDT is not considered a debt securities (which facilitates its adoption).Tokenization of assetsand the issuance of stablecoins lastreated in real (BRZ), a move that could revolutionize the national financial system.

Secondlyby Felipe TordinPartner ofKPMG in BrazilThe Tether audit can be used toCase of Success“Crypto asset regulation in the country is advancing, and initiatives like this show that the market is willing to adapt to global best practices,” he said.

Meanwhile, DeFi enthusiasts in Brazil should watch closely how Tether will deal with upcoming challenges, such asCBDCs (central bank digital currencies)— like the Brazilian Drex — and the growing popularity of algorithmic stablecoins, which promise greater decentralization. One thing is certain: the era of opacity in the stablecoins market is coming to an end, and those who do not adapt are at risk of falling behind.