Lately, there has been a lot of debate regarding the integrity of the stablecoins. Particularly, questions abound regarding the truthfulness of the reserves they hold for the tokens. In this light, Stasis appoints statutory auditor to verify its cash reserves.
According to a news release, BDO Malta will take the responsibility of ensuring Stasis’ cash reserves match tokens in circulation. In particular, the auditor will “provide interim quarterly and annual statutory audits for STSS Malta Limited.”
Compliance and transparency
Further, the firm will make sure that weekly cash reserve reports are available to the stakeholders. The information should enable third parties to verify the cash reserve value.
The most important issue at stake here for Stasis is transparency. In a recent conversation on the same issue of integrity, Stasis CFO Vyacheslav Kim said:
“The recent conversation around stablecoins has hinged on two things: compliance and transparency.”
Evidently, Stasis is trying to meet the transparency end of the bargain with the recent developments. In particular, BDO Malta will ascertain the parity between Stasis’ tokens and the Euro.
Stasis owns the EURS stablecoin with billions of coins in circulation. The coins are stable for the reason that they have a one-to-one parity with Euros. This means that for every one EURS stablecoin in circulation, there is one Euro in reserve as collateral.
Stasis appoints statutory auditor to boost investor confidence
Interestingly, the reserves “allow EURS holders to be confident that the digital asset will maintain price parity with the euro.”
For this reason, it is important for the firm to ensure that the coins match the fiat collateral. Particularly, this is for the interest of price parity. Therefore, Stasis appoints statutory auditor to routinely verify the truthfulness of the stablecoin-fiat collateral relationship.
On the other hand, the routine verification is for the purpose of making the markets safe for investors. According to says Gregory Klumov, CEO of STASIS, the main aim is to reduce “counterparty risk at every stage of the process.”
Nonetheless, Stasis is not the first firm to offer public attestations of its reserves. Other crypto firms like Gemini regularly publish their attestations to boost investor confidence.