Stablecoin issuer Circle slid sharply immediately after Tether announced an accounting audit. Tether said it would work with a Big Four accounting firm to audit USDT reserves for the first time. After the announcement, Circle shares plunged 19 percent, posting their worst day. The move to strengthen USDT transparency shocked the market, and Coinbase also fell 9 percent.
USDT is the largest stablecoin with a market value of $184 billion, but controversy over its opacity has persisted because it had conducted only quarterly attestations without a formal audit. Tether stressed the audit was an important step to ensure USDT stability and liquidity. Circle’s USDC has undergone a formal annual audit by Deloitte and has been regarded as a more institution-friendly stablecoin. But Tether appears to be strengthening its market leadership by working with a Big Four accounting firm.
Leave a Reply