Tether Achieves Top Security Compliance with ‘Gold Standard’ SOC 2 Audit

Tether, the issuer of the largest stablecoin USDT, has announced the successful completion of the System Organization Control (SOC) 2 audit. This represents the highest level of security compliance an organization can demonstrate, developed by the American Institute of Certified Public Accountants (AICPA).

The independent SOC 2 audit validates that Tether’s systems and processes meet rigorous standards for data protection and information security controls. Tether plans to undergo annual SOC 2 examinations going forward to ensure its security practices remain compliant.

“This independent validation of security controls is vital for Tether, demonstrating our commitment to being the world’s most trusted and compliant stablecoin,”

Paolo Ardoino, CEO of Tether.

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Tether’s Market Dominance and S&P Critique

With a market capitalization of over $104 billion, Tether’s USDT is the third-largest cryptocurrency behind Ether and Bitcoin. It reached a $100 billion market cap milestone on March 4th

However, in a December 2023 report, S&P Global Ratings critiqued USDT for being worse than rival stablecoins at its core task of maintaining a $1 valuation.

S&P’s new Stablecoin Stability Assessment rates stablecoins on a 1 to 5 scale evaluating their ability to hold a stable value against fiat currencies. Tether’s USDT received a score of 4, meaning “constrained” stability – while major competitors like Circle’s USDC got higher ratings of 2 (“strong”).

Beyond stablecoins, Tether is expanding into Bitcoin mining operations. The firm aims to spend around $500 million building mining facilities in Uruguay, Paraguay and El Salvador. Their goal is to grow computing power to 1% of the Bitcoin network by 2024.

Ardoino stated Tether plans to amp up direct mining to 450 megawatts by end of 2025, using movable container setups to adapt to changing electricity costs.

However, he emphasized “Mining for us is something that we have to learn and grow over time.”