Tether, the issuer of the world's largest stablecoin USDT, has taken a landmark step toward transparency by formally engaging Big Four accounting firm KPMG to conduct its first full independent financial statement audit. This move, confirmed by a Financial Times report citing people familiar with the matter, marks a significant shift for a company that has historically faced persistent questions about its reserves.
The audit engagement will comprehensively cover Tether's digital asset holdings, traditional reserves, and tokenized liabilities linked to USDT. The stated goal is to provide stronger assurance that the stablecoin is fully backed and liquid. Tether has also engaged another Big Four firm, PwC, to prepare its internal systems ahead of the audit. This represents the most concrete step yet toward full financial scrutiny for the stablecoin giant.
Historically, Tether has relied on periodic attestations—point-in-time confirmations of balances—provided by firms like BDO Italia. A full audit goes much further, involving a detailed review of assets, liabilities, internal controls, and reporting systems. The timing is critical as USDT has grown to become systemically important to the entire crypto market, with a market capitalization now exceeding $184 billion and more than 550 million users worldwide.
The push for an audit coincides with Tether's preparations for a U.S. expansion and a potential fundraising round. Reports indicate the El Salvador-based company has faced investor hesitation in efforts to raise $15 billion to $20 billion at a $500 billion valuation, with concerns centered on pricing and regulatory risk. Tether's move aligns with a shifting U.S. regulatory landscape, including the GENIUS Act signed into law in July 2025, which established the first federal framework for stablecoins. Under this framework, Tether has already launched a compliant dollar-pegged token, USAT.
This development follows a long history of scrutiny. In 2021, CoinDesk filed a Freedom of Information Law (FOIL) request with the New York Attorney General's office seeking documents on USDT's reserves. Tether fought the release in court and lost twice. The documents, received in 2023 after a two-year legal battle, revealed that as of March 2021, Tether held the vast majority of its $40.6 billion in reserves at Bahamas-based Deltec Bank, with significant exposure to commercial paper issued by Chinese and international banks like Agricultural Bank of China, Bank of China Hong Kong, and ICBC.
