The Asset-Backing Risk of Stablecoin Trading: the Case of Tether

• Autorzy: Javier Jorcano Fernández , Miguel Ángel Echarte Fernández , Sergio Luis Náñez Alonso
• Języki publikacji: EN

Abstrakty

EN

This article aims to analyse the asset-backing risk of stablecoins, focusing on international accounting standards, classification criteria, and auditing standards and using Tether as a case study. It examines Tether's issuance, backing, controls, ratios, and regulations to assess risk transmission and mitigation. The results suggest a need for unified and strengthened accounting and auditing standards to enhance user confidence. Liquidity, solvency, and debt ratios were applied to Tether's balance sheets; while Tether has made efforts to increase its transparency, and although it possesses highly liquid assets, challenges remain regarding its liquidity, solvency, and debt. An independent auditors' valuation is crucial for investor confidence, demonstrating that more specific regulations are required for stablecoins. Future research should explore other stablecoins to comprehensively understand the accounting and auditing challenges in the field. (original abstract)

Słowa kluczowe

EN

Monetary policy; Financial sustainability; Audit; International Financial Reporting Standard; Risk management; Variability; Balance sheet

PL

Polityka pieniężna; Stabilność finansowa; Audyt; Międzynarodowe Standardy Sprawozdawczości Finansowej (MSSF); Zarządzanie ryzykiem; Zmienność; Bilans

• Czasopismo: Economics and Business Review
• Rocznik: 2024
• Tom: 10 (24)
• Numer: nr 1
• Strony: 57--80

Twórcy

autor

Javier Jorcano Fernández

• The Startup CFO, Madrid, Spain

autor

Miguel Ángel Echarte Fernández

• DEKIS Research Group, Department of Economics, Catholic University of Ávila, Avila, Spain

autor

Sergio Luis Náñez Alonso

• DEKIS Research Group, Department of Economics, Catholic University of Ávila, Avila, Spain

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Identyfikatory

DOI

https://doi.org/10.18559/ebr.2024.1.1211