> Paxos Trust Company has engaged Withum, a nationally top-ranking auditing firm, to independently verify at specific points in time that the entire supply of Paxos Standard tokens is consistent with USD in reserve accounts at U.S. banks held and managed by Paxos.
> Withum performs month-end attestations of these accounts using standards established by the AICPA.
An independent third party verifies and attests to the fact reserves match supply every month. Looks fine to me.
Yep, I get that it looks fine to you. That’s because you don’t understand the difference. That was the whole point of my comment. You spend 5 seconds googling and say “yep, good enough for me”.
An attestation basically says that we’ve verified that your bank says you have $X in your account.
Deltec, Tether’s bank, is owned by Tether. So it’s worthless.
But attestations tell you nothing about solvency. Let’s say I need to show $1k in my bank account. So I go to a loan shark. I can now get an attestation that I have $1k. It’s true, I do...but I also owe $1k.
Indeed. I had to get an attestation of revenues for a visa. I provided my accountants with an excel. They produced a statement to the effect that “To the best of our knowledge the client’s excel sheet says what the client says it says”
For the Paxos attestations, Paxos merely needs the money in an account at specific points in time.
Avoiding USDT won’t help you. A tremendous piece of the current BTC price is fueled by USDT because its currently trades at 1:1 with the USD. This then provides the leg to every other stablecoin and fiat currency.
But if you take that away, the whole party stops. Exchanges can’t afford BTC sub $10k anymore. There is no hiding from Tether. They have co-opted the system.
> Paxos Trust Company has engaged Withum, a nationally top-ranking auditing firm, to independently verify at specific points in time that the entire supply of Paxos Standard tokens is consistent with USD in reserve accounts at U.S. banks held and managed by Paxos.
> Withum performs month-end attestations of these accounts using standards established by the AICPA.
An independent third party verifies and attests to the fact reserves match supply every month. Looks fine to me.