Tether has hired KPMG to perform a full audit of its USDT stablecoin, the Financial Times reported Thursday, citing people familiar with the matter. The move — revealed after Tether said earlier this week it had formally engaged a “Big Four” auditor — also includes PwC, which the company has brought in to ready its internal systems for the upcoming audit. CoinDesk has contacted Tether for comment.
Why this matters
- Size and market role: USDT is the largest stablecoin, with roughly $185 billion in circulation. It serves as a de facto reserve currency for crypto markets and is a major buyer of U.S. Treasury bills, linking crypto liquidity to traditional finance at scale.
- Scope of the engagement: A full financial-statement audit by KPMG would go beyond the monthly attestations currently published by BDO Italia. It would involve a detailed review of assets, liabilities, internal controls and reporting systems — the kind of scrutiny critics have long demanded.
- Regulatory and strategic context: The move comes as Tether prepares for a U.S. expansion and a possible fundraising round. The Financial Times has reported investor caution about Tether’s attempt to raise $15–20 billion at a $500 billion valuation, with concerns focused on pricing and regulatory risk.
Background on transparency issues
Tether has faced persistent questions about its reserve composition since launching USDT in 2014. In 2021 CoinDesk filed a FOIL request with the New York Attorney General’s office to obtain reserve documents; Tether fought the release in court and lost. Documents released in 2023 showed that, as of March 2021, the bulk of Tether’s $40.6 billion in disclosed reserves was held at Deltec Bank in the Bahamas and included substantial exposure to commercial paper issued by Chinese and other international banks, such as Agricultural Bank of China, Bank of China Hong Kong and ICBC.
Regulatory backdrop
U.S. policy is evolving: the GENIUS Act, signed last July, established the first federal framework for stablecoins. Under that framework Tether has already launched a compliant dollar-pegged token, USAT. Increasing regulatory clarity and a Big Four audit could help address investor concerns and smooth Tether’s path to deeper engagement with traditional markets.
What to watch next
- Whether KPMG’s audit will be completed and when results are published.
- How PwC’s systems work will change Tether’s internal controls and reporting.
- Whether the audit and any resulting disclosures ease investor hesitation ahead of the company’s U.S. push and fundraising plans.
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