KPMG Signs Off on Tether's 2025 Financials, Delivering Big Four Validation for USDT

KPMG has issued an unqualified audit opinion on Tether's 2025 financial statements, marking the highest level of assurance an auditor can provide and a long-awaited milestone for the issuer of USDT. Tether described the engagement as the "largest inaugural financial audit in history." According to the company, KPMG's work examined Tether's assets, liabilities, income, cash flows, internal systems and records, counterparties, and supporting documentation. Tether also said KPMG physically counted and inspected each gold bar the company claims to hold, rather than relying only on custodian reports. The audit matters because Tether has spent years facing scrutiny over whether USDT was fully backed, previously relying on quarterly attestations rather than a full audit. The questions have been reinforced by past enforcement actions: in 2021, Tether reached an $18.5 million settlement with New York over misrepresentations about its reserves, and the CFTC fined the company $41 million that year for stating USDT was fully backed by U.S. dollars when that was not always the case. CEO Paolo Ardoino characterized the KPMG opinion as a rebuttal to critics, citing what he called false claims, competitor pressure, political attacks, and inaccurate coverage. He also pointed to the physical verification of Tether's gold holdings as a notable element of the audit. The timing aligns with Tether's push to expand in the U.S., including efforts around a domestic stablecoin and deeper engagement with regulators under the new GENIUS Act framework. A clean Big Four audit could ease regulatory discussions and make it simpler to access business relationships that have been harder to secure. Competitive pressure may also intensify. Firms that have positioned transparency as a differentiator could see that narrative weaken if Tether can now point to Big Four validation. Circle, for example, has promoted itself as a regulated and transparent alternative to Tether. Tether's scale underscores the potential market impact: the company reported $1.5 billion in Q2 profit and says it holds more U.S. Treasuries than many countries. With an unqualified opinion in hand, some institutions and market participants may be more willing to use USDT. The audit does not undo prior enforcement actions, but it provides the independent verification that many counterparties have demanded and could reshape competitive dynamics in the stablecoin market.