An Insurance Firm Claims Tether (USDT) Is Completely Backed

The firm behind Tether (USDT), Tether Holdings Limited, has recently published a testimony, which was made by an insurance company. The testimony from the insurance company, Moore Cayman, claims that Tether tokens are fully backed by an asset, but the insurance company did not disclose what type of assets the crypto token is backed by.

Moore Cayman Makes a Bold Claim

Moore Cayman is an insurance company based in the Cayman Islands. Moore Cayman testified on behalf of Tether and stated that the crypto asset is fully backed but has not yet disclosed the identity of its reserves. The testimony posted by Tether Holding Limited closely analyzed various characteristics of Tether, which in short, stated that the consolidated liabilities of the USDT are less than its consolidated assets.

Tether Holdings Limited reported their financial statements recently on 28th Feb 2021, which show clearly that the total assets of the company, which are around $35.28 billion, are far more than their total liabilities, which are a mere $35.15 million.

The report posted by the company also claims that Tether has been fully backed always and the testimonial of the insurance company they shared confirms their claims yet again.

The company said in the report that the growth of Tether in the market has always been a validating factor for the company, and the company understands the interest of the public in this matter. They also said that they are happy to oblige to the public’s concerns, and that is why they have shared this testimony, keeping up their commitment and promise of transparency.

The Public Wants an Independent Audit

While the report claims that the Tether tokens have more than ample USDT reserves, it has also raised a lot of concerns regarding the transparency of the company and if the crypto asset is backed by enough USD by the critics and the public alike. Tether tokens are one of the most vital crypto assets in the market.

The real concern is that a testimony is not comparable to an audit, and the company has not been audited by a firm like PwC or Deloitte. The company is planning to post more attestations, but they won’t matter unless the company gets properly audited.