GreenBox POS becomes one of the industry's first to ensure real-time custodial account attestations through agreement with Armanino
GreenBox POS (NASDAQ: GBOX), a financial technology company that leverages proprietary blockchain security and token technology to deliver customized payment solutions, has consistently called for improved processes to make the stablecoin industry custodial and transactional - the two elements GreenBox believes are critical to the industry's long-term success. After completing a long and rigorous process, GreenBox today announced a partnership with accounting and consulting firm Armanino to attest to all GreenBox custodial accounts in real-time.
While GreenBox POS Chairman Ben Errez is complimentary of recent changes from others in the stablecoin industry to continue to move to fully liquid backing as well as more frequent audits, he also stresses that liquid backing and real-time reporting - not simply regular reporting - are critical to both retain customer and retailer confidence and avoid future issues.
"I could not be more pleased to see the stablecoin industry and the regulators move in the direction GreenBox has built our company on since our founding," said Errez. "We anticipate that with time, major industry players will continue to adopt the principles of real-time reporting and a fully liquid backing. Through our coyni stablecoin and platform, we are the only company in the industry that has been doing so since our founding," he added.
Recent market turmoil has shined a light on stablecoin models that are pegged to a currency, like the U.S. dollar, but peg using a variety of algorithmic methodologies or non-liquid or risky investment strategies. Errez believes a stablecoin must have the current reserves in the trust (custodial) account to ensure liquidity under any scenario, even if everyone wants to exit at the same time in a "run-on-bank" type scenario.
GreenBox recently received final approval from Armanino, after a lengthy process of IT review, compliance and complete SOC 2 compliance certification, allowing for real-time attestations of all custodial accounts.
"GreenBox POS believes it has solved both the custodial and transparency questions with a surprisingly simple three-part process: first, our custodial accounts are held in a federal bank. Second, we pre-fund every issuance with fully liquid U.S. dollars so we always have reserves equal to or greater than the number of stablecoin we have in circulation. Finally, we have these two conditions continuously attested to by Armanino, an independent audit firm with the technology to review these conditions in real-time."
Errez notes that GreenBox POS is the only stablecoin company that has operated this way since its founding, providing a level of transparency and stability not available elsewhere in the market.
"At Greenbox, we have very high standards and strive to provide maximum visibility not just to our current partners, but also to future partners who want to know they are in business with a company they can trust completely. We know this is difficult, but we strongly believe this is the only way to succeed over the long term,"
Errez added. GreenBox co-founder and chairman Ben Errez is available for interviews on this topic.