Tether, the company behind the USDT stablecoin, has announced the successful completion of a System and Organization Controls 2 (SOC) audit.
The audit, developed by the American Institute of Certified Accountants (AICPA), is the highest level of security compliance an organization can achieve.
Coinbase Completes Gold Standard Audit
Tether announced the news in a blog post, stating that the company had taken a significant step towards achieving the highest level of security compliance achievable by an organization. Tether described the System and Organization Controls Type 1 audit as the gold standard when it comes to security compliance, and its completion underscores the company’s commitment to delivering secure operations.
“Tether, the largest company in the cryptocurrency industry, announced a significant security update today. The company underwent the System Organization Control (SOC) 2 Audit Type 1, marking the initial phase of achieving the highest level of security compliance an organization can demonstrate. The SOC 2 Type 1 audit examination is a gold standard in security compliance developed by the American Institute of Certified Public Accountants (AICPA) and underscores Tether’s position as an industry leader committed to delivering a secure experience.”
The AICPA also tagged a SOC 2 examination report as a report on controls pertaining to the security of a firm, its availability, processing integrity, confidentiality, and privacy. The audit ensures that Tether has robust IT control measures in place to enhance its systems’ safety. It also ensures that the business can be accessed when needed, and any sensitive data or information is disclosed only to authorized individuals via encrypted transmissions. The audit also tested Tether’s firewalls, problem resolution speed, intrusion detection, customer authentication, and network reliability. Speaking about the successful completion of the audit, Tether CEO Paolo Ardoino stated,
“This 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.”
Commitment To High Standards
Tether has outlined its commitment to maintaining high standards by committing to undergo the SOC 2 examinations annually and ensure that its operations and security practices are operational at the highest standards. The company also said it was looking forward to acquiring the SOC Type 2 Certificate by 2025. The SOC Type 2 audit assesses the operating effectiveness of a company over a period of 12 months. The company stated that these efforts aimed to ensure that its security practices meet the highest standards.
“Tether constantly updates its security strategy, focusing on leading with innovative technology, transparency, and accountability to its stablecoin users. Its commitment to completing the SOC 2 Type 1 audit reaffirms its dedication to ensuring strong security measures for token holders. This proactive step aligns with Tether’s commitment to transparency, building trust within the user community, and engaging constructively with regulatory authorities.”
Tether’s Bitcoin Mining Plans
Tether also plans to expand beyond stablecoins and has committed to spending $500 million to build Bitcoin mining facilities in Uruguay, El Salvador, and Paraguay. Tether CEO Ardoino has stated that the company plans to grow its computing power to 1% of the Bitcoin mining network. The new sites will boast a capacity between 40 and 70 megawatts and will also include a $610 million debt financing facility extended to Northern Data Group.
The company plans to increase its direct mining operations capacity to 450 megawatts by the end of 2025. It is also contemplating setting up a separate 300-megawatt facility. These facilities are being set up within containers so they can be moved when electricity prices change.
“Mining for us is something that we have to learn and grow over time. We are not in a rush to become the biggest miner in the world.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
