Key Points
- KPMG has been engaged by Tether to perform a comprehensive audit of its $185 billion in USDT stablecoin reserves
- PwC is assisting with internal system preparation in advance of the comprehensive audit process
- This audit represents a more thorough examination than the monthly attestations currently issued by BDO Italia
- Tether seeks to expand operations in the United States while pursuing a fundraising round of up to $20 billion at a $500 billion company valuation
- This transparency initiative follows the implementation of the GENIUS Act, establishing the first federal regulatory framework for stablecoins
The issuer of USDT, the world’s most widely circulated stablecoin, has engaged KPMG, one of the Big Four accounting firms, to perform a comprehensive audit of its reserve holdings. Additionally, PwC has been contracted to assist with internal system preparation, as reported by the Financial Times.
This development represents a significant pivot for an organization that has fielded scrutiny regarding its financial disclosures for more than ten years.
With approximately $185 billion in tokens currently in circulation, USDT plays a crucial role in cryptocurrency trading and ranks among the top holders of U.S. Treasury securities.
Previously, Tether’s financial disclosures consisted solely of monthly attestations issued by BDO Italia. An exhaustive KPMG audit would provide substantially more depth, examining assets, liabilities, control mechanisms, and financial reporting infrastructure.
Simon McWilliams, Tether’s Chief Financial Officer, stated this week that the organization was “already operating at Big Four audit standard” and affirmed that “the audit will be delivered.” While Tether had previously confirmed engagement with a Big Four firm, KPMG was not publicly identified until the Financial Times report.
Background on Tether’s Disclosure Practices
Historically, Tether has resisted certain transparency initiatives. In 2021, CoinDesk submitted a Freedom of Information Act request to the New York Attorney General’s office requesting information about USDT’s reserve makeup.
Tether contested the document release through legal channels and was unsuccessful in both attempts. Materials eventually disclosed in 2023 revealed that in March 2021, Tether maintained the majority of its then $40.6 billion in reserves with Deltec Bank, located in the Bahamas. The portfolio included significant holdings of commercial paper issued by Chinese financial institutions such as Agricultural Bank of China, Bank of China Hong Kong, and ICBC.
The current audit initiative signals a notable departure from the company’s previous reluctance toward public transparency.
United States Market Entry and Capital Raising Initiatives
The decision to pursue a comprehensive audit coincides with Tether’s strategic plans to enter the United States market. Simultaneously, the company is seeking to secure between $15 billion and $20 billion in funding, aiming for a corporate valuation of $500 billion.
According to earlier Financial Times coverage, potential investors have expressed reservations related to valuation metrics and regulatory uncertainties.
Tether’s enhanced transparency efforts are partially motivated by emerging U.S. regulatory requirements. The GENIUS Act, which became law last July, created the initial federal regulatory structure for stablecoins in the United States.
Operating under this legislation, Tether has already introduced USAT, a compliant dollar-backed stablecoin.
The company, which is based in El Salvador, is now working to align its operations with U.S. regulatory standards as cryptocurrency continues gaining traction in traditional financial sectors.
Tether has not yet issued an official statement regarding the KPMG engagement.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
