Tether, the largest issuer of stablecoins, has posted on its blog that it has passed a SOC 2 Type 1 audit.
Tether CEO Paolo Ardoino said the compliance measure “assures our customers that their assets and data are managed in an environment meeting the highest standards for data protection and information security.”
“This independent validation of security controls is vital for Tether, demonstrating our commitment to being the world’s most trusted and compliant stablecoin.”
The SOC 2 Type 1 audit examination was created by the American Institute of Certified Public Accountants (AICPA). It focuses on security compliance.
Tether outlined the “trust services principles” that the audit adheres to:
- Security: Implemented measures such as firewalls, intrusion detection, and enhanced authentication protocols to safeguard customer data.
- Availability: Focuses on maintaining a reliable and active network, while also addressing efficiency in problem resolution.
- Processing Integrity: Focuses on whether systems achieve their purpose, delivering accurate data at the right price and at the right time.
- Confidentiality: Restricts data access and disclosure to authorized individuals or organizations, with a strong emphasis on encrypting data during transmission.
- Privacy: Ensures responsible collection, use, retention, and disclosure of personal information.
Tether has been criticized in the past for its opacity of operations and questionable reserves. In recent years, However, It has sought to treasure users and pursue criteria to be compliant and create user confidence. Tether (USDT)—its dollar-based stablecoin—is the third largest crypto in the world by market cap, with a valuation of over $104 billion.
