Key Highlights
- KPMG has been engaged by Tether to perform a comprehensive audit of reserves backing its $185 billion USDT stablecoin
- PwC joins the effort to prepare Tether’s internal operational systems for the upcoming audit process
- This comprehensive audit represents a significant advancement beyond the monthly attestation reports currently issued by BDO Italia
- Tether seeks to expand operations in the United States while pursuing a capital raise of up to $20 billion with a proposed $500 billion valuation
- These developments align with the GENIUS Act, establishing the inaugural federal regulatory framework for stablecoins in America
Tether, the entity responsible for USDT—the world’s most widely circulated stablecoin—has selected KPMG, a leading accounting firm, to execute a comprehensive audit of its reserve holdings. The company has simultaneously engaged PwC to enhance its internal operational frameworks, as reported by the Financial Times.
This development represents a significant milestone for an organization that has encountered scrutiny regarding financial disclosure practices throughout the past decade.
USDT maintains approximately $185 billion in active circulation. The stablecoin serves as a fundamental tool throughout cryptocurrency trading platforms and ranks among the most substantial holders of United States Treasury securities.
Previously, Tether’s reserve documentation consisted of monthly attestation reports produced by BDO Italia. The engagement of KPMG for a full-scope audit will provide substantially deeper examination, encompassing asset verification, liability assessment, internal control evaluation, and reporting infrastructure review.
Simon McWilliams, serving as Tether’s Chief Financial Officer, stated this week that the organization maintains operations “already operating at Big Four audit standard” with confidence that “the audit will be delivered.” While Tether previously acknowledged engaging a Big Four accounting firm, the specific identity remained undisclosed until the Financial Times confirmed KPMG as the selected auditor.
Background on Tether’s Disclosure Practices
Tether has historically resisted extensive transparency measures. During 2021, CoinDesk submitted a freedom of information request to the New York Attorney General’s office requesting comprehensive information about USDT’s reserve composition.
Tether pursued legal action to block the document release and faced defeat in two separate court proceedings. Documentation eventually obtained in 2023 revealed that during March 2021, Tether maintained the majority of its then $40.6 billion reserve portfolio with Deltec Bank, headquartered in the Bahamas. The reserve composition showed significant allocation to commercial paper instruments issued by Chinese financial institutions, including Agricultural Bank of China, Bank of China Hong Kong, and ICBC.
The current audit initiative demonstrates a substantial departure from previous approaches to public financial disclosure.
Strategic U.S. Market Entry and Capital Raising Initiative
The comprehensive audit initiative coincides with Tether’s strategic plans to establish operations within the United States marketplace. Simultaneously, the company pursues a fundraising campaign targeting between $15 billion and $20 billion in capital, seeking a corporate valuation of $500 billion.
Previous Financial Times coverage indicated that potential investors expressed reservations, primarily centered on valuation considerations and regulatory uncertainty factors.
Tether’s enhanced transparency approach responds directly to emerging United States regulatory requirements. The GENIUS Act, enacted into law during July of the previous year, created the inaugural federal regulatory structure governing stablecoins throughout the United States.
Operating within this legislative framework, Tether has introduced USAT, a dollar-backed token designed to meet compliance standards.
The company, headquartered in El Salvador, currently positions itself to fulfill U.S. regulatory obligations as cryptocurrency assets achieve broader integration within traditional financial infrastructure.
Tether has yet to release an official public statement addressing the KPMG engagement.
