Tether Hires Big Four for USDT Reserve Audit, Impacting Circle
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2026
0mins
Should l Buy COIN?
Source: Newsfilter
- Severe Market Reaction: Following Tether's announcement of hiring a Big Four accounting firm for the first audit of its USDT reserves, Circle's stock plummeted by 19%, marking its worst day ever, indicating strong market sensitivity to transparency issues.
- Intensified Competition: As the largest stablecoin with a market cap of $184 billion, USDT has faced scrutiny for years due to the lack of a full audit, and this commitment to transparency may intensify competition with Circle's USDC, which has a market cap of $78.6 billion.
- Commitment to Transparency: Tether stated that engaging a Big Four firm is a crucial step in enhancing its transparency and risk management, aiming to boost market confidence and meet regulatory expectations, which could reshape investor perceptions.
- Widespread Market Impact: The news not only affected Circle but also caused a 9% drop in Coinbase's stock, its main distribution platform for USDC, reflecting the market's heightened focus on the transparency and liquidity of stablecoins.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 172.990
Low
230.00
Averages
361.63
High
440.00
Current: 172.990
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the onchain economy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. The Company offers products and services to various customer groups: consumers, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime trading, markets, base protocol and Coinbase wallet. The Company also provides market infrastructure in the form of exchanges for customers to trade spots and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Payment Product Expansion: The trust charter will allow Coinbase to explore infrastructure products, particularly around payments, which is expected to drive innovation and development in crypto payments, further enhancing its market position in the cryptocurrency sector.
- Optimized Regulatory Environment: By being regulated directly by the OCC instead of state regulators, Coinbase will simplify its operational processes, reduce compliance costs, and facilitate growth in the fast-evolving crypto industry.
- Stablecoin Strategy: Coinbase aims to establish Circle-issued USDC as a mainstream global payment method, with initiatives like Coinbase Payments and partnerships with Shopify further advancing its payment strategy implementation.
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- Weak Market Response: Although Coinbase's stock ticked up by 0.02% in after-hours trading and closed above $171 on Friday, retail sentiment around COIN remained in the 'bearish' zone, indicating cautious market attitudes towards its future prospects.
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See More
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- Trust Bank Approval: Coinbase has received conditional approval from the U.S. Office of the Comptroller of the Currency to operate as a trust bank, although the company clarified it will not accept retail deposits or engage in fractional reserve banking, which will enable more efficient handling of funds under regulatory oversight.
- Payment Product Expansion: The trust charter will allow Coinbase to explore infrastructure products, particularly around payments, which is expected to drive innovation and development in crypto payments, further enhancing its market position in the cryptocurrency sector.
- Optimized Regulatory Environment: By being regulated directly by the OCC instead of state regulators, Coinbase will simplify its operational processes, reduce compliance costs, and facilitate growth in the fast-evolving crypto industry.
- Stablecoin Strategy: Coinbase aims to establish Circle-issued USDC as a mainstream global payment method, with initiatives like Coinbase Payments and partnerships with Shopify further advancing its payment strategy implementation.
See More
ICBA Criticizes Coinbase's Trust Bank Charter Approval
- Regulatory Approval Controversy: The Independent Community Bankers of America (ICBA) labeled the Office of the Comptroller of the Currency's (OCC) conditional approval of Coinbase's national trust bank charter application as a 'grave mistake,' highlighting significant issues that could jeopardize customer asset security.
- Control Function Deficiencies: The ICBA pointed out flaws in Coinbase's risk and control functions, profitability challenges, and resolution risks, raising concerns about the handling of customer assets in the event of company failure, thereby triggering a trust crisis regarding its proposed custody services.
- Weak Market Response: Although Coinbase's stock ticked up by 0.02% in after-hours trading and closed above $171 on Friday, retail sentiment around COIN remained in the 'bearish' zone, indicating cautious market attitudes towards its future prospects.
- Historical Opposition Stance: The ICBA formally objected to Coinbase's banking ambitions last November, arguing that the company failed to meet the National Bank Act and OCC's regulations, reflecting broader concerns about crypto and fintech firms seeking bank charters without fulfilling traditional regulatory requirements.
See More
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- Trust Bank Approval: Coinbase has received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to operate as a trust bank, which will enable it to expand payment products under federal supervision, enhancing its competitive edge in the crypto payments sector.
- Regulatory Advantage: By being directly regulated by the OCC rather than state-level authorities, Coinbase will simplify its operations and reduce compliance costs, allowing the company to operate more effectively in the fast-evolving crypto industry.
- Payment Strategy Development: Coinbase has established a payment strategy centered around the stablecoin USDC, launching the Coinbase Payments product and collaborating with Shopify to position USDC as a mainstream global payment method, thereby increasing its market share.
- Clear Market Goals: CEO Brian Armstrong has set an ambitious goal to make USDC the number one stablecoin globally and aims to position Coinbase as the leading financial services app in the coming years, reflecting its aspirations in the crypto finance landscape.
See More
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- AI Payment Market Share: Solana captures at least 65% of on-chain payments through the Coinbase-developed x402 protocol, highlighting its leading position in AI-driven payments and likely attracting more developers and users.
- Surge in Payment Volume: In 2025, AI agents accounted for $31 billion in payment volume on Solana, where the active network not only increases transaction frequency but also burns tokens, potentially driving up token prices through supply-demand dynamics.
- Massive Future Potential: With the proliferation of AI agents, the agentic commerce market is projected to grow from $136 billion last year to $1.7 trillion by 2030, positioning Solana as a key platform in this growth trajectory.
- Investment Strategy Advice: Despite Solana's exciting long-term potential, given its 61% decline over the past six months, investors are advised to treat it as a small part of a diversified portfolio, gradually purchasing to mitigate risk.
See More
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- Market Growth Projection: Research from Edgar, Dunn & Company indicates that the agentic commerce market, driven by AI agents, is expected to grow from $136 billion last year to $1.7 trillion by 2030, highlighting a transformative potential for traditional payment systems.
- Solana's Market Share: Solana accounts for at least 65% of all agentic on-chain payments, leveraging its rapid transaction speeds and low fees to attract a significant number of AI agents, thereby solidifying its position in the cryptocurrency market.
- Transaction Volume of AI Agents: By 2025, AI agents are projected to generate $31 billion in payment volume on Solana, indicating a rapid enhancement in transaction capabilities that could significantly impact the supply-demand dynamics of cryptocurrencies.
- Investment Considerations: While Solana's long-term potential is promising, its 61% decline over the past six months suggests that investors should treat it as a small part of a diversified portfolio to mitigate risks and avoid excessive exposure at unfavorable prices.
See More
Franklin Templeton Acquires 250 Digital to Enhance Crypto Offerings
- Acquisition Deal: Franklin Templeton has agreed to acquire the small crypto investment firm 250 Digital, which will enhance its newly established Franklin Crypto unit, with the deal expected to close in the second quarter, further advancing its digital asset strategy.
- Asset Management Expansion: By bringing 250 Digital in-house, Franklin Templeton aims to enhance its actively managed crypto investment offerings beyond basic bitcoin ETFs, catering to institutional clients' demand for sophisticated investment strategies.
- Market Trend: This move reflects a growing institutional preference for yield and complex strategies, as evidenced by a resurgence in bitcoin ETF inflows despite a 41% decline in bitcoin prices over the past six months, indicating strong institutional demand.
- Strategic Partnerships: Franklin Templeton's footprint in digital assets includes collaborations with major crypto industry players like Binance, showcasing its progressive stance in traditional finance and aiming to attract more clients through innovative products and services.
See More
