Euro-backed stablecoin issuer Stasis makes promise to become first independently audited stablecoin

Stasis, the Maltese stablecoin startup, will have its financials and euro reserves independently audited, the company has announced. The audit is meant to prove that the company's supply of EURS token is backed by an equal deposit of euros.

The move by Stasis is the latest twist in the stablecoin shake-up of the last month. Fellow stablecoin issuers Circle, Gemini, and Paxos all published attestations that their USD-pegged tokens have sufficient fiat collateral in their bank deposits. However, Stasis will go a step further if it fulfills its commitment to conduct full audits for EURS. Other issuers - including Gemini - have said that such audits are unattainable given crypto's novelty. 

Stasis and its peers are under pressure to shake off investor skepticism around stablecoins, fueled by the unsettling precedent set by Tether, the dominant stablecoin issuer currently. Tether claims its USDT tokens are backed 1-to-1 by US dollars. However, Tether has yet to publicly release its audits after 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. 

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Stasis CFO Vyacheslav Kim seemed intent on separating the company from the Tether controversy in a statement last week. Kim said that "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, Stasis' 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.

(Source: CoinDesk)

About Author

Isabel is The Block's London and European reporter. She previously reported for Reuters in Madrid and London, following on from her time as a freelance journalist for the Guardian and the New York Times. She has a Bachelors in War Studies from King’s College London and a Master of Philosophy from the University of Oxford. Conflict of Interest: Edward Woodford, the CEO of SeedCX, is Isabel's brother. She does not report on any issues related to Seed or advise other authors in any regard.