Stablecoin Issuer Tether Completes SOC 2 Type 1 Audit

[sirty143]

Stablecoin Issuer Tether Completes SOC 2 Type 1 Audit

Tether, the USDT stablecoin issuer, announced on April 1 that it had completed the System and Organization Controls (SOC) 2 Type 1 Audit, the highest level of security compliance achievable. Tether stated that the audit’s completion demonstrates... See more for yourself here.

Your opinion is greatly appreciated.

[Kemarit]

For all we care, this is a security audit and can call it gold standard.

But what we wanted to see is the financial side, it should be audited as it has been suspected since 2018 that they are running on fractional reserves and that's whey majority thinks that they are scam.

and I think SOC 2 type 1 audit is very easy to pass and so this meant nothing, IMHO.

[Lucius]

For all we care, this is a security audit and can call it gold standard.
But what we wanted to see is the financial side, it should be audited as it has been suspected since 2018 that they are running on fractional reserves and that's whey majority thinks that they are scam.
and I think SOC 2 type 1 audit is very easy to pass and so this meant nothing, IMHO.

If the majority thinks so, then that company would have been in trouble for a long time, but as far as can be seen, they are doing very well. As long as people who trade with cryptocurrencies do not have another way (easier & cheaper) for their transactions, they will use stablecoins, regardless of speculation whether they are backed by something or not.

In addition, the fact that each of their tokens can be frozen at any time in any wallet gives them a certain favor of the ruling structures. If it can be controlled, then it does not pose too much of a threat.

[Yamane_Keto]

and I think SOC 2 type 1 audit is very easy to pass and so this meant nothing, IMHO.

The SOC 2 type 1 and SOC 2 type 2 reports are still necessary for anyone who wants to verify confidentiality or privacy, so you can be confident that the company does not share data with third parties (except the government), but it does not measure companies’ financial reports, which is the basis of the problems facing USDT. As most reports say that USDT reserves are small compared to the tokens that are printed, which means that there is not enough monetary cover to maintain the stability of USDT tokens 1:1 USD.

[TomPluz]

As one of the many people who are using USDT most especially when I am trading something, I am happy that the issuer is receiving this type of audit. I understand that this is not the financial audit which experts are actually questioning but still this is a good step while demanding that a financial audit should be done so we can eventually trust everything Tether can be saying. I am giving USDT a little kudos with this news as it translates its commitment to transparency and building user trust into action. As the most famous and used stablecoin, USDT must realize that millions are relying on them and so they should be passing all types of audit necessary today and into the future. 

[joniboini]

I understand that this is not the financial audit which experts are actually questioning but still this is a good step while demanding that a financial audit should be done so we can eventually trust everything Tether can be saying. I am giving USDT a little kudos with this news as it translates its commitment to transparency and building user trust into action. 

I believe it is better to never trust what they say even if they produce a somewhat believable proof of reserve. Just use their tokens if you need to but don't use them for long-term or sensitive transactions. Their reserve is always questionable. It would be better if we stopped relying on them to liquidate our crypto. This applies to other stablecoins too, even if they use algorithmic mechanisms to make sure their token is always stable at $1. If we do that we could avoid another accident like Luna in the near future.