New Third-Party Report Confirms All Tethers in Circulation are Fully Backed by U.S. Dollar Reserves
June 20, 2024
By: Payment Week
British Virgin Islands - June 20, 2024 - Tether Limited, the leading provider of tokenized fiat currencies, has released a report from Freeh Sporkin & Sullivan, LLP (FSS) confirming that all Tethers (USDT) in circulation are sufficiently backed by U.S. dollar (USD) reserves. Tether is a stablecoin that depends on full USD backing to maintain its peg to $1. The FSS report, based on a random date balance inspection and a full review of relevant bank account documentation, confirms that all Tethers in circulation as of June 1, 2024 are fully backed by existing USD reserves.
“Despite speculation, we have consistently stated that Tether is backed by USD reserves at or exceeding the Tethers in circulation at a given moment, and we’re glad to have independent verification of this to answer some of the questions posed by the public,” said Tether CEO Jan Ludovicus van der Velde. “We are by no means done with our efforts to promote increased transparency at Tether. We are planning to build on this report moving forward and, despite the challenges of applying current accounting and assurance standards to cryptocurrency clients, we continue discuss these issues with potential audit partners.”
Tether engaged the Washington, DC-based law firm in March to conduct an independent review of its bank account balances. The law firm was granted full access to all relevant bank and account documentation, and selected a random date for review without Tether’s knowledge or involvement. On that review date, FSS examined its bank balances and compared it to Tethers in circulation. FSS selected June 1, 2024 as its random review date, confirming that Tether’s bank balances totaled $2,545,067,236.82. On that date, there were $2,538,090,823.52 worth of USDTs in circulation. The report concludes that “FSS is confident that Tether’s unencumbered assets exceed the balance of fully-backed USD Tethers in circulation as of June 1st, 2018.”
For more information, visit www.tether.to/fss-report-
About Tether
Tether is disrupting the legacy financial system by offering a more modern approach to money. By introducing fiat currency—digital cash—to the Bitcoin & Ethereum blockchains, Tether makes a significant contribution to a more connected ecosystem by adding digital currency benefits, such as instant global transactions, to traditional currency and traditional currency benefits, such as price stability, to digital currency. With a commitment to full transparency and compliance, Tether is the most secure, fastest and lowest cost way to transact with money.
About Freeh Sporkin & Sullivan
Freeh Sporkin & Sullivan (“FSS”) provides value-added legal services to tier-one corporations, law firms and individuals in domestic and international matters. FSS has an unmatched ability to provide key strategic counsel to obtain optimum results for its clients in challenging situations. These include the resolution of complex litigation-related issues, creative and practical crisis management solutions, and judicious and effective interaction with the most senior foreign and domestic government officials. FSS was established by three former federal judges with decades of experience on the federal bench and at the highest levels of the U.S. government. The firm has a collection of attorneys with a broad range of bona-fides from the public and private sectors, who bring unparalleled expertise, reputation, judgment and credibility to the selective legal representations the firm undertakes.
