Transparency in Stablecoins

Tether and Circle are feeling the heat to show more solid proof of their reserves. With the supply on the rise, getting regular audits is turning into a must. For traders, having faith in stablecoins is crucial. Just one issue of trust could cause a huge wave of volatility in the markets. Do you take reserve reports at face value, or are you a bit more careful with how much you involve yourself with stablecoins?

Is there other possibility then trust it with a grain of salt? Just like trusting CEX is keeping our accounts and money safe. Today it would be really hard to hedge against the volatility without pegged stablecoin pairs. For sure, transparency is needed and it's good that they are required to give it, but as need for reserves is cut down for banks as well (again), i think it's hypocritical to require stablecoins to have more transparency and reserves.

I do trust the report only when it comes from the reliable auditors. It like Circle who has Deloitte and Thornton LLP as their independent auditor. They have also granted MICA standard to operated in EU. They also meet with AICPA's standard in US. They even listed their asset in Nasdaq. Unlike Circle, i always feel cautious with Tether as this company very lacked of transparency when it comes to the reserve report. I meant they failed to get Mica license, and not yet fully compliant with US standard in term of reserve report. So, Circle much more erliable for me rather than Tether, and it's all based on how reliable their report are and what license they received.