By: Isha Das
Stablecoin issuer, Tether has disclosed plans to enhance the transparency of its reserve data by the year 2024. The incoming CEO, Paolo Ardoino, expressed that the company intends to begin publishing its reserve data in real-time as part of its commitment to its users and the larger crypto industry. The move comes amid a rising call for increased transparency by market participants and regulators in the sector.
As the provider of the largest stablecoin globally, Tether, the company presently releases and refreshes its reserves data at least once daily. Additionally, monthly and quarterly reserve reviews are conducted. The prospective real-time system of publishing the data will serve increased transparency, potentially boosting the trust levels in the stablecoin.
The announcement comes following the heightening pressure on the company for increased transparency, propelled not just by regulatory scrutiny but also by events such as the collapse of Terra’s UST stablecoin and the US banking crisis that exposed its rival USD Coin (USDC). The real-time data communication is anticipated to help investors better assess risks and examine the auditors’ relationship with Tether.
As part of its transparency commitment, the stablecoin issuer, in its Q2 attestation, stated that it had increased its excess reserves by $850 million, bringing the total to $3.3 billion. Furthermore, it disclosed that it had indirect exposure to US Treasuries worth $72 billion held by money market funds and US Treasuries collateralizing its overnight repo.
© BlockBriefly. All Rights Reserved.