Tether Holdings Limited, the company behind the USDT stablecoin, released an independent accountant report on Monday claiming that its tokens are fully backed by its reserves. Moore Cayman, an accounting network based in the Cayman Islands, reviewed Tether’s latest Consolidated Reserves Report, or CRR, and determined that the company met its reserve obligations for the period that ended on June 30, 2021. According to the report, Tether’s consolidated total assets amounted to at least $62,773,190,075 for the reporting period. The company’s consolidated total liabilities were $62,628,932,116, of which $62,610,829,196 were related to USDT. Moore Cayman’s opinion on the matter is …

A 2022 trial date has been set for former NFL team owner and alleged “shadow banker” Reggie Fowler. Fowler is the accused operator of the shadow bank to the crypto sector, Crypto Capital, which was at the center of controversy in the court case against iFinex Inc — the parent company of crypto exchange Bitfinex and stablecoin issuer Tether. According to Wednesday court documents, United States District Judge Andrew Carter of the Southern District of New York has set a jury selection and trial date for Feb. 14, 2022, which is subject to change in light of future pandemic-related restrictions. …

Despite the recent breakouts to the $40,000 level, Bitcoin’s (BTC) price could still face downward pressure in August. The 42% rally in late July effectively inspired some optimistic short-term options bets, but the initial data largely favors the neutral-to-bullish call options, and failure to sustain $40,000 has significantly reduced this advantage. A good deal of the pressure is probably coming from the infrastructure proposal in the United States Senate. HR 3684 tightens rules on businesses handling cryptocurrencies and expands reporting requirements for brokers, which has had a knock-on effect on the market’s bullish momentum. In addition to tightening regulations on …

The private stablecoin market will surge parabolically in the next four years despite the existing regulatory uncertainty, Unstoppable Domains CEO Matthew Gould believes. In a Thursday interview with Business Insider, Gould predicted that the stablecoin market would hit $1 trillion by 2025 to see roughly a tenfold increase from around $115 billion at the time of writing. “We may even do it quicker than that,” the CEO noted, adding that the global stablecoin adoption will be partly driven by the growing acceptance of decentralized finance applications. “The more people with stablecoins in the pocket, the more people who can participate …

The firm behind the world’s leading stablecoin, Tether, is facing more regulatory pressure this week with United States financial watchdogs scrutinizing the composition of its reserves. According to a Tuesday Bloomberg report, the Acting Comptroller of the Currency, Michael Hsu, said regulators are looking into Tether’s stockpile of commercial paper to see whether each Tether (USDT) token really is backed by the equivalent of one U.S. dollar. A team of regulators led by Treasury Secretary Janet Yellen has held a high-level, closed-door talk on the risks posed by stablecoins and particularly Tether. Citing “people familiar with the matter,” the report …

There will be an official audit of the world’s most popular stablecoin, Tether (USDT), within months, according to the project’s general counsel. An audit for the world’s third-largest digital asset has been awaited for several years, and increased regulatory pressure appears to have accelerated the process. In a rare mainstream media interview on CNBC, Tether chief technology officer Paolo Ardoino and general counsel Stuart Hoegner were asked some pressing questions on the subject of USDT’s backing and transparency. Hoegner responded to the question by saying: “We are working towards getting financial audits, which no one else in the stablecoin sector …

Auditors working for Circle have disclosed the reserves backing the firm’s USD Coin (USDC) stablecoin, while Mad Money’s Jim Cramer has questioned Tether’s lack of transparency with its Tether (USDT) reserves. Multi-national tax advisory firm Grant Horton conducted the audit, and a reserve attestation report was published on Tuesday, which showed that 61% of USDC’s reserves were held in cash and cash equivalents equating to $13.4 billion as of May 28. Circle’s total commercial paper accounts for 9% of its reserves, and the figures provide a stark contrast to Tether’s reserves, in which undisclosed commercial paper accounted for 49.5% of …

Stablecoin usage lost steam amid the recent crypto market downturn. From peaking at nearly $2 billion on May 19, the daily transaction volume has fallen off its 2021 average by about 60%. The significant drop begs the question about stablecoin activity in the current market environment. Unsurprisingly, the two cryptocurrencies that remain in a tight race for stablecoin dominance are Tether (USDT) and USD Coin (USDC). However, the market holds a fine distinction between the two, particularly with their corresponding reserve holding. Credit rating agency Fitch Ratings even warned recently about Tether's risk triggering a destabilization in short-term credit markets, …

Jerome Powell, chairman of the Federal Reserve of the United States (Fed) told the House of Representatives today that stablecoins should face stricter regulations similar to money market funds or bank deposits. Powell was asked specifically about Tether (USDT), currently the most valuable stablecoin, by Representative Anthony Gonzalez (R-OH). Tether claimed that each coin was backed by a dollar, but that has been proven false. Rather, it is backed mostly by commercial paper or debts. Powell said most of the time those assets are very liquid, but during the recent financial crisis that wasn’t the case. He explained: "The market …

A crypto payments gateway says that it now makes it easy for online merchants in Africa to accept Bitcoin at the checkout. Paychant says its tool can be easily integrated into websites, WooCommerce, Magento, PrestaShop and an array of other online stores with a single line of code. This gives retailers access to a growing number of consumers who want to pay using cryptocurrencies. According to Paychant, its infrastructure is simple, secure and convenient — and is geared toward small and large businesses alike. Nonprofit organizations can also accept crypto donations with ease. Customizable widgets are offered that can be …

The growth of stablecoins that are not fully backed by safe assets could trigger a destabilization in short-term credit markets, rating agency Fitch has warned. In a commentary note, the agency explained that coins that are fully backed by safe assets pose a lesser risk for the financial markets. The agency gives USD Coin (USDC), which is backed by United States dollars on a one-to-one basis held in custody accounts, as an example for fully backed stablecoins but warned that the authorities “may still be concerned if the footprint is potentially global or systemic.” On the other hand, Tether held …

The stablecoin market has been growing exponentially, and last week, Eric Rosengren — president of the Federal Reserve Bank of Boston — appeared to raise a cautionary flag. “There are many reasons to think that stablecoins — at least, many of the stablecoins — are not actually particularly stable,” he said in remarks before the Official Monetary and Financial Institutions Forum, voicing concerns that “a future [financial] crisis could easily be triggered as these become a more important sector of the financial market, unless we start regulating them.” Moreover, in an accompanying slide presentation, the bank CEO referenced Tether (USDT), …