Tether Achieves Top Security Compliance with SOC 2 Audit Completion

Apr. 2, 2024
Tether Achieves Top Security Compliance with SOC 2 Audit Completion

Tether, the issuer of the largest stablecoin USDT, has announced the successful completion of  System Organization Control (SOC) 2 Audit Type 1, demonstrating its commitment to offering a secure user experience. The audit, developed by the American Institute of Certified Accountants (AICPA), is the highest level of security compliance an organization can achieve.

Paolo Ardoino, CEO of Tether, emphasized the importance of this audit in an April 1 announcement, stating, “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.”

Moreover, Tether has committed to undergoing annual SOC 2 audits to ensure its security practices remain consistent with the standards. The firm aims to achieve the SOC 2 Type 2 certification by the end of 2025, which assesses the effectiveness of Tether’s internal controls over 12 months.

Tether’s USDT stablecoin, pegged to the US dollar, boasts a market capitalization exceeding $104 billion as per CoinMarketCap. It reached a record $100 billion market cap on March 4, posting 9% year-to-date growth. This makes Tether the third-largest cryptocurrency by market capitalization, behind Ether (ETH) and Bitcoin (BTC). Its closest competitor, Circle’s USD Coin (USDC), is the seventh-largest crypto, with a $32.5 billion market cap.

Furthermore, the successful completion of the SOC 2 audit underscores Tether’s commitment to maintaining the highest security and compliance standards in the rapidly evolving cryptocurrency industry.

Tether Invests Big in Bitcoin Mining Expansion

Tether, the company behind the largest stablecoin, is significantly expanding its operations into Bitcoin mining. According to an interview with Bloomberg on November 16, 2023, Tether plans to spend around $500 million to construct new Bitcoin mining facilities across Uruguay, Paraguay, and El Salvador.

Furthermore, the ambitious goal is for Tether to control 1% of the total Bitcoin mining network’s computing power. The new sites will have 40 to 70 megawatt (MW) capacities. This massive investment includes the $610 million debt financing agreement Tether provided to German Bitcoin miner Northern Data Group.

But Tether isn’t stopping there. The firm intends to ramp up its direct Bitcoin mining operations to a staggering 450 MW capacity by 2025. It is even considering developing an additional 300 MW facility.

Furthermore, in an innovative approach, Tether will house its mining rigs inside movable containers. This will allow them to relocate operations whenever electricity prices shift to find the cheapest power sources.

“Mining is something we must learn and grow into over time,” stated Tether’s Paolo Ardoino in the interview. “We’re not rushing to become the world’s biggest miner.” Moreover, Tether’s Bitcoin mining expansion alongside USDT aims to bolster its position in the cryptocurrency industry.

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