According to CryptoPotato, Tether, the largest stablecoin issuing company, has successfully completed a System Organization Control (SOC) 2 Audit Type 1, marking its first phase in achieving the highest level of security compliance. The American Institute of Certified Public Accountants (AICPA) considers the SOC 2 examination a report on controls related to a firm's security, availability, processing integrity, confidentiality, or privacy. These reports are designed to provide users with detailed information and assurance about a service organization's controls.
Tether stated that the SOC 2 Type 1 audit is a gold standard in security compliance at the AICPA, and completing the examination demonstrates its commitment to providing secure operations. The AICPA verified that Tether has robust IT control measures in place to enhance the safety of its systems, ensure the business can be accessed when needed, and guarantee that sensitive information is disclosed only to authorized individuals through encrypted transmissions. The audit also examined Tether's firewalls, problem resolution speed, customer authentication, intrusion detection, and network reliability.
Tether plans to undergo SOC 2 examinations annually and aims to obtain the SOC 2 Type 2 Certificate by 2025. The audit evaluates the operating effectiveness of its internal controls over a 12-month period. These efforts are aimed at ensuring the company's security practices consistently meet the highest standards. Tether recently expanded its crypto portfolio by purchasing 8,889 BTC worth $627 million, with its Bitcoin reserves currently valued at $5.26 billion.