Anchorage Digital Partners with Deloitte for Tether’s USAT Attestation Report
In a significant development for the U.S. stablecoin landscape, Anchorage Digital has enlisted Deloitte to create the inaugural attestation report for Tether’s USAT. This partnership aligns with Tether’s ambitions to launch a regulated stablecoin in the United States.
Key Findings of the Attestation Report
The report, which evaluates USAT’s reserves, revealed that as of January 31, the reserves amounted to $17.6 million, while the circulating supply of the stablecoin stood at $17.5 million. This provides USAT with a buffer of about $100,000 shortly after its introduction last month.
The reserves backing USAT are comprised of cash and U.S. Treasuries, safeguarded within American financial institutions. This report was developed based on standards set by the leading global organization for certified public accountants last year.
Tether’s Strategic Positioning
Tether’s USAT emphasized in a recent blog post how their stablecoin leverages Tether’s global reach while benefiting from Anchorage’s proven reliability within the framework of U.S. federal regulations. Notably, Anchorage became the first digital asset bank to receive federal chartering in 2021.
Tether CEO Paolo Ardoino remarked, “Anchorage Digital Bank is establishing a clear standard of accountability and financial strength. We intend to help define the next chapter of digital dollars in the United States.”
Under the leadership of CEO Bo Hines, a past executive director of the White House’s digital assets working group, USAT aims to strengthen its position in a sector increasingly scrutinized by regulatory bodies.
Regulatory Context and Future Implications
The launch of USAT comes in the wake of the GENIUS Act, which framework requires U.S. stablecoin issuers to adhere to stringent reserve regulations that differ from Tether’s current backing model, which includes Bitcoin and gold among its assets. Deloitte’s involvement in USAT underscores Tether’s strategy to gain the trust of institutional investors by enhancing regulatory compliance around its U.S. stablecoin offerings.
Tether’s reserves have not previously undergone a full audit, and its core USDT stablecoin has attracted criticism for its potential connections to illicit activities. The company’s decision to move its headquarters to El Salvador last January fueled further concerns, with Ardoino stating that no major audit firms would take on their audit due to reputational risks. However, he expressed a commitment to securing thorough independent audits as a priority.
Limitations of the Attestation Report
The attestation report from Deloitte mainly confirms the existence of reserves at a specific point and does not assess the ongoing management of these assets by Anchorage. It is also important to note that Deloitte did not evaluate whether the reserves adhere to any legal requirements at the federal, state, or local level.
Circle, Tether’s major competitor in the stablecoin domain, had appointed Deloitte as its independent auditor for its 2022 fiscal year, allowing the firm to produce attestation reports for Circle’s USDC reserves beginning in January 2023.
