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VET · 10w

PwC (Hong Kong) Is advising, Not Auditing, Another Stablecoin Project. - Could it possibly run on Vechain?

The Hong Kong division of global accounting and consulting firm PwC is exploring the best practices for issuing stablecoins, as part of an initiative with the non-profit Loopring Foundation.

Announced Tuesday, PwC Hong Kong's Asia-focused study on stablecoins follows a PwC partnership in the U.S. to advise decentralized lending platform Cred, which is working on a U.S. dollar-tied coin.

Stablecoins or one sort or another are suddenly all the rage, with the likes of Circle issuing its dollar-backed USDC on exchange giant Coinbase, and even big players like IBM getting in on the act.

In addition, the current fervor for price-stable crypto coins seems to have coincided with something of a meltdown involving Tether, the issuer of the USDT stablecoin, following long-festering doubts about its dollar reserves.

"There's a need for enhanced trust," William Gee, PwC's risk assurance emerging technology leader for China and Hong Hong, PwC told CoinDesk. "So we are asking how things would look inside a regulated context; what are the standards, protocols, best practices and how would they fit?"

The Loopring Foundation, which drives decentralized exchange protocols, said PwC's involvement will help with its own drive for transparency around the creation and management of stablecoins and securities token offerings.

"The level of security and auditablity empowered by the Loopring Protocol will play an essential role in regtech applications," Daniel Wang, founder of Loopring Foundation said in a statement.

Audit? Not so simple

Stepping back, a continuing interest in this area from a firm like PwC seems to raise the question, wouldn't third-party audits of stablecoins carried out by Big Four accountancy companies be the next logical step?

"We are obviously looking at this area. So are all the major firms. I would say even beyond the Big Four," said Gee, who pointed out the PwC has been appointed as auditor of Tezos,...

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