Tether, the company that issues the USDT stablecoin, has undergone the American Institute of Certified Public Accountants’ System Organization Control (SOC) 2 Type 1 Audit.
Paolo Ardoino, CEO of Tether, highlighted that the completion of this control audit marks a significant milestone in the cryptocurrency company’s evolution towards transparency and trust.
The issuer of USDT, which is currently the most capitalized stablecoin on the market and the most traded cryptocurrency in the world, has faced years of criticism for its lack of transparency in the reserves that support the issuance of the stablecoin. However, after being charged by the New York Attorney’s Office, which banned its use within the state in early 2021, the company has committed to the transparency of its reserves of value, to promote security and trust. of its users.
Tether envisions a new level of compliance
The SOC 2 Type 1 audit is an evaluation and certification of a company’s or organization’s security controls developed by the American Institute of Certified Public Accountants (AICPA), which is responsible for developing rules related to security, valuation and financial statements. financial, ethics and quality control of companies. Therefore, the completion of this audit represents an important step for Tether in security compliance, demonstrating its current and solid practices in the field of management and cybersecurity.
Arduino emphasized that the SOC 2 Type 1 audit has become the gold standard for companies’ security compliance and that its completion demonstrates the company’s commitment to providing “the most reliable and compatible stablecoin in the world.”
SOC 2 Type 1 certification demonstrates that Tether is employing robust IT control measures that ensure the security of its systems, ensure they are accessible when necessary, and maintain the privacy of user information. The AICPA audit process also examines cybersecurity measures, such as firewalls, intrusion detection, and enhanced customer authentication, along with network reliability and speed of issue resolution.
These types of control tests are essential to detect, prevent or correct any risk and, according to Ardoino, Tether is updating its security processes to lead the crypto industry by example.
Although cryptocurrencies are a rapidly growing market that has expanded globally in just a few years, it also carries certain security risks that companies must address to ensure the well-being and protection of their users.
A commendable commitment
Ardoino assured that Tether will undergo this and other audits and control processes periodically, in order to demonstrate that it is committed to the security and trust of the users of its stablecoin. In the statement, he indicated that:
“Tether has also committed to undergoing SOC 2 exams annually to ensure that its operations and security practices are consistently operated to the highest standards.”
On the other hand, Ardoino commented that the company has also committed to obtaining SOC 2 Type 2 certification next year, to demonstrate the operational effectiveness of its internal processes and controls.
The most traded cryptocurrency in the world
USDT is the third cryptocurrency in the market by capitalization. However, it leads the market in terms of daily trading volume, trading more than $71 billion daily, according to data from CoinMarketCap.
The Tether stablecoin recently surpassed the $100 billion mark in capitalization, in line with the bull market and the renewed interest of users and investors in the crypto space. To date, USDT is accessible on multiple blockchain networks, being implemented on chains such as Ethereum, Solana, Algorand, Tron, EOS and others that have helped its expansion.
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