Stablecoin issuer Tether has announced the successful completion of the System Organization Control (SOC) 2 Type 1 audit. According to Tether, this step is integral to reinforcing its commitment to providing a secure and transparent environment for its users, highlighting its role as a frontrunner in the industry.
The SOC 2 Type 1 audit, recognized as a benchmark for security compliance, was developed by the American Institute of Certified Public Accountants (AICPA). Tether’s accomplishment in this area is significant, given the audit’s rigorous assessment based on five foundational ‘trust service principles’: Security, Availability, Processing Integrity, Confidentiality, and Privacy. Tether claims this certification is indicative of its robust IT controls and its dedication to upholding the highest standards of data protection and information security.
Exploring the Five Trust Service Principles
- Security: Tether mentions that it has fortified its security measures with the implementation of firewalls, intrusion detection systems, and advanced authentication protocols to protect against unauthorized access to customer data.
- Availability: Tether emphasizes its commitment to maintaining a reliable and efficient network, focusing on swift problem resolution to ensure consistent service availability.
- Processing Integrity: Tether asserts the reliability of its systems in processing data accurately and timely, fulfilling the intended purpose effectively.
- Confidentiality: According to Tether, access to sensitive data is tightly controlled, with an emphasis on data encryption during transmission to ensure that information disclosure is restricted to authorized entities.
- Privacy: Tether is dedicated to the responsible management of personal information, from collection to disclosure, safeguarding user privacy at all levels.
Paolo Ardoino, Tether’s CEO, remarked on the achievement, stating that this compliance measure serves as an assurance to customers regarding the management of their assets and data in a secure environment. Tether says this independent validation of their security controls is crucial, demonstrating their ongoing commitment to being a compliant and trusted stablecoin issuer.
Furthermore, Tether claims its strategy includes not only reaching but maintaining high security standards. The company has committed to annual SOC 2 examinations to ensure continuous adherence to these rigorous criteria. Looking ahead, Tether aims for the SOC 2 Type 2 Certificate in the 2024/25 period, which will offer an even more comprehensive assessment of its internal controls over a specified duration.
As The Block reported yesterday, Tether “purchased another $627 million worth of bitcoins in the first quarter of 2024, bringing its total holdings to about 75,354 BTC — worth over $5.2 billion.”
Tether CEO Paolo Ardoino told The Block these bitcoins were bought during Q1 2024:
“It was bought over the full quarter, then settled at the end.“
Featured Image via Unsplash
