Tether’s U.S. regulated stablecoin USAT releases first reserve report… Deloitte involved

Tether has released the first reserve report for USAT, a U.S. regulated stablecoin. The report enlisted Big Four accounting firm Deloitte as it moved to bolster confidence among mainstream institutions.

According to crypto-focused outlet Decrypt on the 3rd, digital asset bank Anchorage Digital issued USAT’s first reserve adequacy report (attestation) via Deloitte. The report said that as of Jan. 31, USAT reserves totaled $17.6 million, while the amount in circulation was $17.5 million—implying excess collateral of about $100,000.

The report said USAT reserves consist of cash and U.S. Treasuries and are held at financial institutions in the United States. However, the attestation verified balances at a specific point in time and did not assess day-to-day operating practices or legal and regulatory compliance. Deloitte also explicitly stated it did not determine whether the reserves comply with federal, state, or local laws and regulations.

USAT was launched after the enactment of last year’s “GENIUS Act.” The law imposes strict reserve requirements on stablecoin issuers in the United States. This differs from the structure of Tether’s existing stablecoin USDT, whose collateral is partly composed of assets such as Bitcoin and gold.

Tether is seen as adopting a “two-track strategy,” building a U.S.-market-specific regulated model through USAT while operating it separately from its existing global business. Anchorage Digital is the first digital asset bank in the United States to receive a federal charter, in 2021.

USAT is led by CEO Bo Hines, who previously served as executive director of the White House digital assets working group. Tether is expected to accelerate efforts to win the confidence of institutional investors through this report.

Tether has not undergone a comprehensive external audit of its reserves, and USDT has faced criticism including allegations that it has been used to facilitate illicit fund flows. After relocating its headquarters to El Salvador early last year, Tether said it would pursue securing an independent, full-scope audit.

Meanwhile, Circle—Tether’s largest rival—appointed Deloitte as its independent auditor starting in fiscal 2022 and has also published reports on USDC reserves since January 2023.