Tether, the issuer of USDT—the world’s largest dollar-pegged stablecoin—has taken a decisive step toward heightened financial transparency by announcing a partnership with KPMG for an independent audit. This move aims to comprehensively review Tether’s nearly $185 billion USDT supply, marking the company’s most significant push yet to bolster its credibility among global investors and regulators. In addition, Tether has reportedly begun preparations for this audit by engaging PwC to help align its internal systems with international accounting standards.
Audit and Steps Toward Greater Financial Openness
Regarded as the cornerstone of the stablecoin sector, USDT has reached a staggering circulation exceeding $185 billion. Recently, Tether revealed it had formally launched an audit process with one of the “Big Four” accounting firms, signaling an industry milestone for oversight in the largely unregulated stablecoin space.
Commenting on the progress, Tether’s Chief Financial Officer Simon McWilliams emphasized that the company has always operated in line with stringent audit requirements and is committed to completing an independent, in-depth review.
Tether’s CFO Simon McWilliams conveyed that the company already upholds top-tier audit standards, and added that a comprehensive external audit would be published soon.
While Tether currently discloses monthly attestation reports produced by BDO Italia, the upcoming KPMG audit will provide a more exhaustive examination. This full audit will scrutinize Tether’s assets, liabilities, internal controls, and overall reporting mechanisms, offering greater clarity to market observers.
A look back to 2021 reveals the origins of mounting calls for transparency: after an inquiry by the New York Attorney General, Tether faced prolonged legal proceedings concerning the composition of its reserves. Documents released as part of this process showed that much of the then-$40.6 billion in reserves was kept at Deltec Bank, based in the Bahamas, and that a considerable portion included short-term notes issued by Chinese and other international banks.
Tether Eyes U.S. Expansion and Navigates Regulatory Shifts
The audit announcement comes as Tether pursues ambitious plans for expansion in the U.S. market. Amid ongoing fundraising efforts, the company reportedly targeted between $15 billion and $20 billion in new capital at a staggering $500 billion valuation. However, these plans have coincided with investor concerns around valuation metrics and regulatory exposure, underscoring the importance of rigorous external audits.
USDT serves as a de facto reserve currency within the crypto ecosystem, facilitating massive value transfers and acting as a major purchaser of U.S. Treasury bills. Consequently, Tether’s role as a conduit connecting digital assets with traditional finance makes its financial integrity central not only to its own fortunes but to the stability of the broader market.
After the U.S. Congress passed the landmark GENIUS Act last year—establishing the first federal regulatory framework for stablecoins—Tether launched a new dollar-pegged token, USAT, compliant with the updated legal requirements. This move reflects the company’s drive to align its operations with U.S. regulatory expectations and deepen its footprint in the dollar-backed digital asset landscape.
