Tether launches its first comprehensive audit with KPMG taking over the verification of $185 billion in reserves.

According to a report by the UK’s Financial Times, Tether, the world’s largest stablecoin issuer, has selected KPMG to conduct a comprehensive financial audit of its USDT holdings worth roughly $185 billion, and has hired PwC to help strengthen its internal systems in preparation for the audit. The scope of this audit will far exceed the current monthly reserve attestation carried out by BDO Italia, covering full checks of assets, liabilities, internal controls, and reporting processes.

Audit Upgrade: The Fundamental Differences Between Two Mechanisms

Tether CFO Simon McWilliams confirmed that the company has “always operated according to the four major audit standards,” and that the audit work will proceed as planned. Previously, Tether had announced that it would commission one of the “Big Four,” but did not disclose the firm’s name; the Financial Times confirmed, based on information from people familiar with the matter, that the firm is KPMG.

The core differences between the current mechanism and the new audit structure are as follows:

BDO Italia (current): Monthly reserve attestations—limited-scope assurance only on the reserve composition at specific points in time

KPMG (new mechanism): Comprehensive financial statement audit—covers the balance sheet, internal control measures, and the overall reporting system

PwC’s role: Helps Tether strengthen internal systems ahead of the audit to ensure compliance with the requirements of the four major audit standards

U.S. Expansion and the GENIUS Bill: A Dual Structural Incentive to Push for an Audit

Tether’s headquarters is currently based in El Salvador, and it is actively pushing for a U.S. market expansion, planning to raise $15 billion to $20 billion in funding at a $500 billion valuation. However, the Financial Times noted that some potential investors have concerns about valuation pricing and regulatory risk, which has created resistance to the financing process.

On the regulatory front, the U.S. GENIUS Act officially took effect last July, establishing the first federal stablecoin regulatory framework. Tether has rolled out a compliant dollar-pegged token, USAT, in line with the new framework, and bringing in KPMG to conduct a comprehensive audit is a key step to meet the requirements of the new rules and strengthen the compliance foundation. As the world’s largest stablecoin with roughly $185 billion in circulation, USDT is also one of the major holders of U.S. Treasury securities, and its transparency has systemic significance for the stability of the traditional financial system.

A History of Transparency: Shifting From Legal Battles to a Proactive Disclosure Strategy

Tether’s transparency issues have long plagued its market credibility. In 2021, CoinDesk applied under the Freedom of Information Act to obtain documents on USDT reserve composition. Tether filed lawsuits twice to prevent disclosure, and both ended in defeat; the documents were only formally made public in 2023.

The documents show that as of March 2021, Tether stored the majority of more than $40.6 billion in reserves at the Deltec Bank in The Bahamas, and also held large quantities of commercial paper from China Agricultural Bank, the Hong Kong branch of Bank of China, and Industrial and Commercial Bank of China; the reserve composition drew widespread skepticism in the market. The formal appointment of KPMG and PwC marks a structural shift in Tether’s transparency stance, moving from passive response to proactive cooperation.

Frequently Asked Questions

What is the fundamental difference between KPMG’s comprehensive audit and the current monthly reserve reports?

BDO Italia’s monthly reports are reserve attestations, performing only limited checks on the asset composition at specific points in time. The comprehensive financial statement audit carried out by KPMG covers the entire asset and liability structure, internal control processes, and financial reporting systems, with a fundamental improvement in both the depth of disclosures and the rigor of the audit.

How does the GENIUS Act affect Tether’s access to the U.S. market?

The GENIUS Act requires stablecoin issuers operating in the U.S. to meet specific reserve, audit, and information disclosure standards. Tether’s launch of the USAT token and the introduction of one of the Big Four audit institutions are both prerequisite conditions for obtaining qualified, compliant operational status in the U.S. market.

Will Tether’s $15 billion to $20 billion financing plan be pushed forward due to the audit?

Based on existing reports, some investors’ concerns are focused on regulatory uncertainty and valuation pricing. The audit action has been interpreted by industry participants as a strategic move by Tether to remove financing obstacles by improving transparency, but there has currently been no official announcement of any progress in financing.