In a recent announcement, Tether is set to partner with BDO Italia in a bid to upgrade its assurance and attestation processes. The move will see the company sustaining the world’s largest stablecoin, USD₮, working with the global organization BDO.
A New Partnership
The move announced by Wu blockchain on Twitter was indicative of the direction chosen by the two companies. Tether, the blockchain-based company behind USD₮ stated that it began the working relationship in July 2022. This first run saw Tether outsource accounting services from BDO during its quarterly attestations. The success of this operation and the results obtained were the driving force behind the move to continue the working relationship. Prior to this partnership, Tether employed the services of Moore Cayman, a firm from the Cayman Islands.
The partnership will only involve the independent Italian division of the global accounting firm, BDO. The firm is renowned for its excellence in the field of accounting. BDO is ranked among the five best accounting firms in the world. The firm is spread around the world and is in operation in over 160 countries. BDO is also ranked as the fifth largest accounting company in the world in terms of revenue: The company recorded a revenue of US$11.8 billion in 2021 alone. With a meticulous and proven record in the sector, Tether’s choice to use BDO to attest to its reserves was a no-brainer.
What to Expect From the Partnership
The move is set to benefit Tether as it aims to position itself as a juggernaut and a leader in the crypto space. According to Paolo Ardoino, CTO of Tether, the company aims to become the strongest stable asset in the Web3 economy. As a result, transparency and growth are key to achieving this goal.
Tether aims to increase transparency through various methods. The company aims to produce even more reports: The company aims to increase the reports made from a quarterly to a monthly basis. These monthly assurance opinions will help increase transparency alongside daily updates about issued tokens and reserves.
The abovementioned steps will bring the company closer to its goal of completing a full audit. These actions align with Tether’s fulfillment of the promise to provide a complete audit in 2017. Given the current issues facing stablecoins after the collapse of Luna, the stakes have never been higher. The partnership provides Tether with an opportunity to solidify the position of stablecoins and become a pioneer for the future.
The steps will also improve the company’s current image as a tool in the crypto space. According to Paolo Ardonio, “The utility of Tether has grown beyond being just a tool for quickly moving in and out of trading positions, and therefore it is mission-critical for us to scale alongside the peer-to-peer and payments markets,”
The improvement made through the outsourcing will also enable Tether to promote education about the uses and advantages of the web3 tools. This education will enable the firm to push for greater heights as it expands in crypto.