Stasis, the Maltese stablecoin startup, will have its financials and euro reserves independently audited, the company has announced, hoping to prove that its supply of EURS token is backed by an equal deposit of euros.
The move is the latest in a stablecoin shake-up in the last month. Fellow stablecoin issuers Circle, Gemini, and Paxos all published attestations that their USD-pegged tokens have sufficient fiat collaterals. Statis will go a step further if it fulfils its commitment to conduct full audits of its deposits, which other issues – including Gemini – have said are unattainable given crypto’s novelty.
Statis and its peers are under pressure to shake off investor scepticism around stablecoins, fueled by the unsettling precedent set by Tether, the dominant issuer currently. Tether claims its USDT tokens are backed one-to-one by US dollars but is yet to publicise its audits, dismissing its auditing firm Friedman LLP in January. Tether instead offered documents issued by its lawyers and Bahamas-based bank last month, vouching that the company has sufficient fiat collateral.
Stasis CFO Vyacheslav Kim seems intent on separating the company from the Tether controversy in a statement last week, saying, “The recent conversation around stablecoins has hinged on two things: compliance and transparency. By providing verification by a top accounting firm…we’ve established EURS as a standout option for European investors.”
BDO Malta, their newly appointed accounting firm, has already provided the first of its “weekly cash reserve” reports verifying the level of fiat deposits, with official audits expected in Q1 next year.
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Full audits promised by Euro-backed stablecoin issuer, Stasis written by Isabel Woodford @ https://www.theblockcrypto.com/tiny/full-audits-promised-by-euro-backed-stablecoin-issuer-stasis/ December 10, 2018 Isabel Woodford