Tether has hired KPMG to conduct a full financial statement audit of USDT, the world’s largest stablecoin, which currently has approximately $184 billion in circulation. The engagement, first reported by the Financial Times, marks the first time Tether has brought on a Big Four accounting firm for a comprehensive audit. The move signals a notable shift in the company’s approach to financial transparency.
Alongside KPMG, Tether has also engaged PwC to help prepare its internal systems ahead of the audit process. The dual arrangement reflects the scale of the review, which is expected to cover Tether’s complete financial reporting infrastructure, including internal controls and asset valuation. The announcements come as Tether faces some investor hesitation in its fundraising efforts while simultaneously pursuing expansion into the United States market.
Tether claims to hold approximately $192 billion in reserve assets to support the dollar-pegged value of USDT, with the majority of those holdings reportedly held in U.S. Treasuries. The company has long sought a formal audit from one of the Big Four firms — KPMG, Deloitte, PricewaterhouseCoopers, and Ernst & Young — which are widely regarded as a benchmark of rigor and transparency in financial reporting. Securing such an audit has been a stated goal for the company for several years.
Tether’s reserves have faced persistent scrutiny from regulators and market participants. In 2021, the company was fined $41 million by the CFTC over what regulators described as misleading statements related to USDT’s backing. The new audit is seen as a direct response to ongoing questions about the adequacy and accuracy of the company’s reserve disclosures.
The audit also aligns with Tether’s regulatory ambitions in the United States. Tether CEO Paolo Ardoino previously stated that the company intends to register USDT under the GENIUS Act‘s framework for foreign stablecoin issuers, a regime that imposes strict anti-money laundering requirements and mandates comprehensive reserve audits. Compliance with that framework would require exactly the kind of rigorous financial review now underway.
In January, Tether launched USAT, a fully regulated and GENIUS Act-compliant dollar-pegged stablecoin. However, with a circulating supply of just $28 million, USAT remains a minor token compared to the scale of USDT. The contrast between the two products underscores the significance of bringing USDT itself into a more regulated and audited framework as Tether seeks broader acceptance in the U.S. market.
Originally reported by Decrypt.
