Tether Taps KPMG for First Full Audit of USDT Reserves
Tether, issuer of the world's largest stablecoin USDT, has hired KPMG to carry out its first full, independent audit of its financial statements—a milestone the company has deferred for nearly a decade.
The Financial Times reported Friday that KPMG was selected for the engagement, citing people familiar with the matter. Tether said three days earlier that it had launched what it called "the biggest ever inaugural audit in the history of financial markets," but did not identify the auditor at the time.
Tether has also retained PwC to help ready its internal systems ahead of the review, including controls, reporting processes and related infrastructure.
The scope extends beyond the reserve attestations Tether has published periodically since USDT's 2014 debut, most recently via BDO Italia on a monthly and quarterly cadence. Attestations provide a point-in-time view of reserves and do not meet generally accepted standards for a full financial statement audit.
According to the report, KPMG's work covers Tether's full balance sheet, including U.S. Treasuries, cash equivalents, digital assets and tokenized liabilities, as well as internal controls, governance, risk management and compliance systems.
USDT has a market capitalization above $184 billion and is used by more than 550 million people globally. It remains a key liquidity source across crypto markets and is among the largest non-sovereign holders of U.S. Treasury securities.
CEO Paolo Ardoino said in a statement: "Tether's mission has always been to build trust through action." CFO Simon McWilliams—appointed in early 2025 to prepare the company for Big Four-level scrutiny—said the auditor was chosen through a competitive process and that the audit will be delivered.
Tether has faced persistent questions about its reserves since at least 2021, when the New York Attorney General fined the company $41 million for misrepresenting the extent of USDT's dollar backing. Legal records from that period showed significant exposure to commercial paper and certain counterparties. Since then, Tether has shifted reserves toward short-term U.S. Treasuries and has issued quarterly transparency reports.
The KPMG engagement comes as Tether expands its U.S. footprint. In January 2026, it launched USAT, a stablecoin designed to comply with the GENIUS Act, the federal stablecoin framework signed into law in July 2025. A Big Four audit is widely seen as a key step toward meeting the GENIUS Act's reserve verification and reporting requirements for foreign stablecoin issuers seeking U.S. registration.
Separately, reports say Tether has paused preparations for a potential $20 billion equity raise that had been discussed at a valuation near $500 billion, with investors and bankers pressing for audited financials before taking part.
Tether has not disclosed when the audit will be completed or when audited statements might be published. Full audits involving crypto assets and tokenized liabilities often take several months. The company said the process is already underway.
The split engagement—KPMG leading the audit while PwC supports internal readiness—signals a longer-term compliance buildout rather than a one-off effort. Whether the final audit corroborates what Tether's quarterly disclosures have stated remains uncertain.
FAQ
— What is KPMG auditing for Tether?
KPMG is performing a full financial statement audit covering Tether's balance sheet, reserves, internal controls and compliance systems, not a limited attestation.
— Why does this audit matter for USDT?
It marks the first Big Four-level audit for Tether and could support U.S. regulatory compliance under the GENIUS Act while improving institutional confidence.
— What is PwC's role?
PwC was engaged separately to strengthen internal systems, controls and reporting ahead of KPMG's audit.
— When will the audit results be released?
No timeline has been announced; audits of this complexity typically take several months.
