Tether, the issuer of the world’s largest stablecoin USDT, has announced the completion of its first independent audit of reserves, conducted by KPMG U.S. The El Salvador-based company described the review as the most extensive inaugural financial audit in history.
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AAPLKPMG signs off on Tether’s reserves
For years, Tether faced criticism for a lack of transparency regarding its reserve holdings. Industry observers regularly questioned the absence of an independent, thorough audit conducted by one of the Big Four accounting firms.
According to Tether, KPMG performed a detailed review, including the physical verification of each gold bar held in its reserves. The audit included independent substantive testing and verification of all assets and statements, rather than relying solely on reports from external custodians or counterparties.
Tether stated that this process involved KPMG physically counting and inspecting each gold bar to confirm its existence and identifying features.
CEO Paolo Ardoino addressed the doubts surrounding the review, stating that detractors have long claimed an audit of Tether could not be completed and accused the company of avoiding rigorous scrutiny. “We have once again proven them wrong. Completing our financial statement audit sets a new standard for the industry and reflects the leadership we’ve brought to this market from the start,” Ardoino said.
“They said the Company refused to subject itself to the most rigorous scrutiny. We have once again proven them wrong. Completing our financial statement audit sets a new standard for the industry and reflects the leadership we’ve brought to this market from the start.”
Tether did not refer specifically to its sizeable Bitcoin reserves within the audit statement and did not immediately respond to external inquiries on this point.
Mini dictionary: KPMG, one of the “Big Four” accounting firms, provides audit, tax, and advisory services for major corporations and financial institutions worldwide, and an independent reserve audit by such a firm is considered a significant benchmark of transparency in the financial sector.
Breakdown of Tether’s reserves
Tether, established as a leading stablecoin issuer, holds a diversified reserve portfolio that includes gold, U.S. Treasuries, and substantial holdings of Bitcoin. Recent years have seen the company increase its gold acquisitions and amass nearly $60 billion in Bitcoin, according to Arkham Intelligence.
With its USDT stablecoin, Tether has reached a market capitalization of over $183 billion, making it the world’s third largest cryptocurrency by market value.
| Asset | Details |
|---|---|
| Gold | Physically inspected and verified by KPMG |
| Bitcoin | Nearly $60 billion held in reserves (Arkham Intelligence) |
| US Treasuries | Holdings exceed reserves of some countries |
Ardoino further highlighted Tether’s evolution, emphasizing that the firm has grown from a disruptive stablecoin issuer into one of the most significant private financial companies globally. He commented, “This audit demonstrates that our financial infrastructure and governance have evolved alongside that responsibility.”
“This audit demonstrates that our financial infrastructure and governance have evolved alongside that responsibility.”
The completion of the audit marks a milestone for Tether and the broader stablecoin sector, addressing longstanding calls for transparency and independent validation of reserves.
