Audit plays a crucial role in the stablecoin industry. With the rapid development of the digital currency market, stablecoins serve as a bridge connecting traditional finance and the world of cryptocurrencies, making their stability and reliability particularly important. Therefore, auditing becomes a key means to ensure the true and credible value of stablecoins. Through independent third-party audits, the existence of assets behind stablecoins can be verified, and whether they are consistent with their market value can be determined.

This transparency and verifiability are crucial for maintaining investor confidence, ensuring market stability, and promoting the widespread acceptance and use of stablecoins. Therefore, effective auditing not only enhances the credibility of stablecoins, but also brings higher security and compliance to the entire digital currency market.

TUSD's new auditing company, what's the story?

Previously, TUSD had been verified in real-time by an independent industry professional accounting firm, The Network Firm, in the United States to ensure that its US dollar reserves are in a 1:1 ratio with the supply of circulating tokens and a collateralization rate of 100%.

The Network Firm is an independent accounting firm based in the United States that specializes in the digital asset industry. Since 2016, the company's founding team has been leading the development of native cryptocurrency accounting and auditing services, as well as traditional tax and auditing capabilities, and has accumulated rich experience in the industry.

On December 25th, TUSD announced its partnership with Moore Hong Kong, becoming the new auditing firm for TUSD after The Network Firm.

Moore Stephens Hong Kong, established in 1975, is a reputable company in the accounting and consulting fields. It includes Moore Stephens CPA Limited, Moore Stephens Joint Venture Company Limited, Moore Stephens Tax Services Limited, Moore Stephens Consulting Limited, Moore Stephens Transaction Services Limited, Moore Stephens Recovery Limited, and First Hong Kong Secretaries Limited.

As a member of Moore Global, Hong Kong Moore is located at the heart of this global accounting and consulting network. Moore Global, with over 100 years of history, is rooted in the UK and now has extensive influence worldwide.

Moore Hong Kong, with its strong professional team as the core, provides comprehensive services including audit, assurance, accounting, business outsourcing, taxation, and other consulting services. The company initially provided services to the shipping and logistics industry, and has now expanded to multiple fields such as insurance and financial services. The scope of services covers a wide range of clients, from start-ups to internationally listed companies, with rich professional knowledge, especially in the field of listing.

Hong Kong Moore not only has the ability to deeply understand the local market, but also provides customers with professional knowledge and advice with an international perspective based on its regional structure. Moore Global has more than 600 offices in over 110 countries worldwide, with a strong network in Western Europe, North America, and Australia, and rapid expansion in Central and South America, Eastern Europe, and the Middle East. In addition to Hong Kong, other offices in the Asia-Pacific region include China, Singapore, Bangladesh, India, Sri Lanka, Indonesia, Japan, South Korea, Malaysia, the Philippines, Thailand, Vietnam, Cambodia, and Mongolia.

Moore Hong Kong's clients can be assured that they will receive in-depth local knowledge and extensive international support. Each Moore company provides the same high standard of personalized service, ensuring that client needs are met. Moore Global's global coverage and diverse services have positioned it as a key player in the accounting and consulting industry, particularly in providing services to medium-sized enterprises.

24 Hour Leading Technology for Auditing

Previously, the collaboration between TUSD and The Network Firm enabled TUSD to achieve 24/7 real-time proof, ensuring transparency and stability of its reserve funds, and providing users with a better investment experience.

Meanwhile, TUSD has partnered with leading oracle service provider Chainlink to use Chainlink's Proof of Reserves (PoR) technology to ensure coin minting safety, allowing for programmatic minting and real-time on-chain verification of off-chain reserves, further ensuring transparency and reliability. As the first stablecoin to control coin minting programmatically through real-time on-chain verification of off-chain reserves, TUSD demonstrates a new paradigm of decentralization, transparency, and independent verification.

With the integration of Chainlink PoR, TrueUSD (TUSD) is the first stablecoin anchored to the US dollar and verified in real-time on the blockchain by an independent third-party institution to ensure coin minting safety and further enhance transparency and reliability. Users can access relevant data anytime through the official website tusd.io and achieve daily automatic audits.

TrueUSD (TUSD) has partnered with Chainlink to enable on-chain verification of its offline (off-chain) reserves. This is achieved through Chainlink's oracle technology, which allows TUSD to programmatically display the status of its reserves in real-time on the blockchain. This technology is known as "Proof of Reserves" (PoR), which enhances TUSD's standards in transparency and innovation, while also increasing user trust in TUSD's stability and reliability. This partnership sets a new standard for transparency and innovation for TUSD in the decentralized finance (DeFi) space.

How do other leading stablecoin auditing companies do?

In the stablecoin field, the choice of auditing companies is crucial to ensuring transparency and enhancing user trust. Comparing the audit histories of the two major stablecoins, USDT and USDC, as well as the emerging stablecoin FDUSD, we can see their respective development paths and different emphasis on auditing standards.

Tether recently announced a partnership with BDO Italia, the fifth-ranked accounting firm in the world, as an important step towards improving financial transparency. Prior to partnering with BDO Italia, Tether had worked with Moore Cayman and MHA Cayman.

It is worth mentioning that Moore Cayman, which Tether has collaborated with, and Moore Hong Kong, the new auditing company for TUSD, are both member companies of the Moore Global network. Moore Global is an international accounting and consulting network with member companies around the world. Although these member companies are connected in terms of brand and network resources, they are typically independent entities in terms of operation and management. Therefore, although Moore Cayman and Moore Hong Kong belong to the same global network, they are separate operating companies with their own business focuses and markets.

Additionally, Tether plans to transition from quarterly reports to monthly reports and undergo a comprehensive audit. Previously, Tether worked with Friedman LLP, but the partnership ended in 2018. Since then, Tether has hired Freeh, Sporkin & Sullivan LLP for legal advice and guidance, and conducted a full reserve audit with MHA Cayman, confirming that its cash and cash equivalents exceed its liabilities by 100%.

Circle's stablecoin USDC has always been audited by Grant Thornton LLP. Grant Thornton LLP is one of the largest accounting firms in the United States. As of November 30, 2018, they have audited the USDC reserves held by Circle. In addition, Circle announced in early 2023 that they will be partnering with Deloitte to further enhance transparency of their reserves through auditing.

The auditing company for First Digital USD (FDUSD) includes Prescient Assurance, which is a registered accounting firm in the United States specializing in security testing and compliance certification services. The company's main services include SOC 2 audits and attestations, ISO 27001 certification, PCI QSA and ASV services, Google OAuth API verification, etc. By combining an audit team with rich cloud-native technology and modern application security architecture experience, Prescient Assurance fills the knowledge gap in network security testing that most CPA accounting firms providing SOC 2 audits have. The company also provides a variety of other compliance and security certification services, committed to providing customers with a painless, frictionless, and efficient multi-framework audit experience.

Comparing these three stablecoins, we can see that both Tether and USDC are working to improve their transparency and compliance by partnering with well-known accounting firms to enhance user trust. However, Tether's audit process is more diverse, involving multiple different accounting firms, while USDC and FDUSD have relatively stable partnerships with Grant Thornton LLP and Prescient Assurance, respectively.

TUSD History and New Development

Over the past six years, from 2018 to 2023, TUSD has undergone multiple changes.

TUSD is issued by TrustToken and is the first regulated USD stablecoin launched by an operator. It was introduced in April 2018 and received support from well-known investment institutions such as a16z, Founders Fund, and GGV Capital, raising a total of $20 million. TUSD quickly landed on mainstream trading platforms such as Binance, Bittrex, and Upbit, demonstrating its attractiveness in the digital currency field. It is earlier than USDC, USDP, and BUSD.

However, over time, the market position of TUSD has experienced ups and downs. In early 2020, its circulation dropped to about $150 million, lower than USDC's $500 million and USDP's $200 million. After experiencing the initial glory and mid-term decline, fortunately, TUSD turned the corner at the end of the same year and was acquired by Techteryx Ltd., an investment company based in the British Virgin Islands, starting a new chapter of development.

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia