Tether is initiating its first full audit of the $185 billion in USDT reserves, enlisting KPMG for this unprecedented deep-dive. The review signals Tether’s willingness to respond to ongoing calls for greater transparency as it looks to strengthen its presence in the U.S. market and adjust capital-raising targets. Tether, a leading issuer of the world’s largest stablecoin, has faced scrutiny about the backing of USDT, which is used widely across global crypto markets for transactions and as a liquidity vehicle.
KPMG To Conduct Full USDT Reserve Audit
KPMG’s appointment marks a significant change from Tether’s previous reserve reporting practices, which relied on routine attestations by BDO Italia. Those attestations had simply confirmed the state of reserves at month-end snapshots, rather than subjecting the company’s full financials and internal controls to comprehensive review. With the new process, KPMG will examine assets, liabilities, and reporting frameworks.
The upcoming audit aims to evaluate not only Tether’s reserve holdings but also the robustness of its internal systems and regular disclosures. This closer inspection is expected to align the firm with stronger global financial standards and meet rising expectations from regulators and investors. In past years, Tether’s limited attestations had drawn industry criticism for their narrow scope.
Tether CEO Paolo Ardoino explained that trust in digital assets is built through “willingness to open fully to scrutiny,” noting the audit’s scope reflects ongoing internal work to prepare the company for industry-leading transparency.
PwC Engaged For Internal Systems Overhaul
Alongside KPMG, Tether engaged PwC to help upgrade internal processes and ensure readiness for the thorough audit ahead. PwC’s focus will be on preparing internal controls and reporting infrastructure, as the company transitions to meeting the stringent requirements imposed by a full, independent audit. This dual involvement of Big Four accounting firms highlights Tether’s commitment to overhauling its internal practices.
The company indicated that this collaboration is designed to facilitate a smooth and comprehensive audit experience, while more closely aligning its risk and oversight systems with those found in mainstream financial institutions. Tether’s stepped-up preparations reflect increased regulatory and investor attention directed at stablecoins and their reserve management.
Expansion, Fundraising, And Strategy Shift
Tether’s audit initiative forms part of its wider expansion in the United States, where the company aims to establish a stronger footing in regulated environments. Transparency through the KPMG review is seen as a move to bolster confidence as Tether seeks to navigate evolving market and regulatory challenges.
Recent actions include lowering a fundraising target to $5 billion, down from the previously discussed $15–20 billion range. The adjustment follows investor concerns related to pricing, regulatory risks, and market stability for stablecoins, prompting Tether to refine its growth objectives and strategies.
Last year, Tether disclosed around $10 billion in profit through its annual attestation by independent firm BDO. While prior reports confirmed assets on a periodic basis, the KPMG audit will extend into a full-scale review of both financial and operational structures.
This comprehensive audit process is set to enhance clarity around Tether’s reserve management and internal controls, offering a higher degree of assurance for stakeholders and potential new partners in traditional and digital financial markets. The move signals an industry shift toward more robust accountability mechanisms among leading stablecoin issuers.
