Tether, Anchorage Tap Deloitte for First USAT Stablecoin Reserve Report

In brief

• Deloitte penned USAT’s first attestation report on behalf of issuer Anchorage Digital.
• The Big Four accounting firm began working for Circle in 2023.
• Tether signaled last year that it’s pursuing a full, independent audit.

Anchorage Digital tapped Deloitte for USAT’s first attention report, linking the Big Four accounting firm with Tether’s efforts to offer a regulated stablecoin in the U.S. The report showed that USAT’s reserves were valued in excess of the stablecoin’s circulating supply, totaling $17.6 million and $17.5 million, respectively, as of Jan. 31. That meant the token had a cushion of around $100,000 a few days after its debut last month. USAT’s reserves consist of cash and U.S. Treasuries, which are held at financial institutions based in the country, the report showed. It was prepared under a framework established by the world’s largest member association for certified professional accountants last year. 

In a blog post, Tether USAT noted that its token combines Tether’s ability to operate at a global scale with Anchorage’s “strong track record operating under a clear U.S. federal framework.” Anchorage became the first federally chartered digital asset bank in 2021. “Anchorage Digital Bank is establishing a clear standard of accountability and financial strength,” Tether CEO Paolo Ardoino said in a statement. “We intend to help define the next chapter of digital dollars in the United States.” Tether USAT is led by CEO Bo Hines, former executive director of the White House’s digital assets working group, who initially signed on as a strategic advisor to Tether in August. USAT’s debut followed the passage of the GENIUS Act last year, a framework for stablecoins requiring companies operating in the U.S. to abide by reserve requirements that don’t align with Tether’s $183 billion stablecoin, which is partially backed by Bitcoin and gold.

Deloitte’s role in USAT’s attestation report highlights Tether’s bifurcated approach: building a wall of federal compliance around its U.S. stablecoin to win over institutional players who might remain wary of the company’s broader international business. Tether’s reserves have never undergone a full audit, and its flagship USDT stablecoin has previously faced scrutiny for its role in facilitating criminal activity. The company announced that it was relocating its headquarters to El Salvador in January of last year.  Months later, Ardoino told DL News that “none of the Big Four companies will audit us” because they are afraid of damage that it may cause to their reputations. Nonetheless, he said that securing a firm like Deloitte for a full, independent audit was a “top priority.” Decrypt has reached out to Tether for comment. The attestation report produced by Deloitte did not judge how Anchorage manages USAT’s reserves day-to-day, only that the money was there when a snapshot was taken. Additionally, Deloitte did not determine whether the stablecoin reserves “complied with federal, state or local laws or regulations.” Anchorage declined to comment to Decrypt. Circle, Tether’s biggest rival, appointed Deloitte as its independent auditor in its 2022 fiscal year. That means the Big Four accounting firm has been also producing attestation reports for USDC’s reserves since January 2023.