Auditors, a very closed circle – Audit and proof of reserve. Mantras of crypto firms, exchanges and stablecoin issuers. All the more so crisis of confidence of the last months. Circle (USDC) takes the opportunity to move from its historical partner Grant Thornton to the giant Deloitte. All details.
Circle – Deloitte: an exceptional partnership
Circle, a popular issuer of USDC stablecoin, A direct competitor to USDT of Tether, in collaboration with Deloitte. In favor of Coinbase, the cryptocurrency behind Circle, he will be responsible for itstock checking. As you know, in order to release 1 USDC on its blockchain, Circle must prove that it has the equivalent of 1 dollar in its vault. Otherwise, it means that money is created out of nothing, which is clearly prohibited by law. At least when we’re not central bank.
And the news is great. Indeed the so-called so far The Big Four – Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers – four audit behemoths were wary of entering the crypto sector. It is now being done for one of them – and not least: Deloitte. It must be said that Circle is not just any crypto-firm. The company has always demonstrated proximity to its regulation. Maintaining transparency and full compliance with applicable regulations on a regular basis.
A partnership that could give a new boost to the cryptocurrency sector to restore confidence that has been battered in recent months. The transparency and proof of reserve will likely be the motto for many more months. And that might not be such a bad thing for investors.
“Our strong history of transparency underscores our commitment to providing our USDC holders and the public with regular, searchable reports on how we are minimizing risk and maintaining the liquidity of our reserves. »
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Audit firms fleeing the crypto sector?
Circle too issuer of the euro stablecoin, EUROC, until now partnering with the firm Grant Thornton for these previous audits, has changed its relationship. This replacement comes in the form of several auditing firms they expressed their reluctance continue to operate in the field of cryptocurrency. Some of them they completely brought down the sector.
This is the work of well-known audit companies such as Mazars, BDO or even Armanino. He has been particularly concerned with graves so far Evidence of reserve audits exchange KuCoin, Binance and Crypto.com. According to them, what worries them is not the crypto sector itself, but the public’s view of it.” how these reports are understood by the public “.
That’s why Circle manages to stand out as an exception in this era of mistrust and general stigmatization. Despite this, those who do it recently failed in its IPO planned for a long time through Special Purpose Acquisition Partnership (SPAC).
can be the imminent arrival of a unified regulatory framework will be able to restore confidence in the sector, which currently has investors all over the world in doubt. A sector where stablecoins will definitely be at the forefront.
“The first thing that stood out in the Congress [en ce qui concerne la régulation] surely there will be stablecoins. »
Katherine Dowling, Commercial Manager, Bitwise Asset Management
Despite this great partnership between Circle and Deloitte, the situation is far from ideal for the crypto sector in these difficult times. Still continuous criticism the media likes to broadcast to create noise without trying to get to the heart of the matter, harming the entire ecosystem. The fundamental values of this technology, supported by great efforts to educate the public, will take a long time. succeed in overcoming prejudices.
Bitcoin and cryptocurrencies are here to stay and will change the landscape of the economy, everyone agrees. On your side, don’t be too late and Register with AscendEX. Take advantage of a 10% discount on trading fees (commercial link, see terms and conditions on the site).