Key Takeaways
- KPMG has been engaged by Tether to perform a comprehensive audit of its $185 billion USDT stablecoin backing
- PwC is assisting with internal system preparation in advance of the comprehensive audit process
- This represents a significant upgrade from Tether’s existing monthly verification reports issued by BDO Italia
- The company is pursuing American market entry while seeking to raise as much as $20 billion with a proposed $500 billion valuation
- These developments coincide with the GENIUS Act establishing America’s inaugural federal regulatory structure for stablecoins
Tether, the entity responsible for issuing USDT—the world’s most widely-used stablecoin—has appointed international accounting firm KPMG to execute a comprehensive examination of its reserve holdings. Additionally, the company has engaged PwC to assist with internal infrastructure preparation, as reported by the Financial Times.
This development represents a significant milestone for an organization that has encountered scrutiny regarding its financial openness throughout the past decade.
USDT presently maintains approximately $185 billion in market circulation. The stablecoin sees extensive utilization throughout cryptocurrency trading platforms and ranks among the most substantial purchasers of United States Treasury securities.
Previously, Tether’s financial disclosure practices consisted solely of monthly verification statements produced by BDO Italia. A comprehensive examination conducted by KPMG would substantially expand scrutiny, encompassing asset holdings, financial obligations, governance mechanisms, and disclosure frameworks.
Simon McWilliams, serving as Tether’s Chief Financial Officer, stated this week that the organization was “already operating at Big Four audit standard” and assured that “the audit will be delivered.” While Tether had previously acknowledged engaging a Big Four accounting firm, the specific identity remained undisclosed until the Financial Times revealed KPMG as the selected auditor.
Tether’s Track Record on Financial Disclosure
Tether has historically resisted transparency initiatives. In 2021, CoinDesk submitted a freedom of information request to the New York Attorney General seeking information regarding USDT’s reserve asset composition.
Tether contested the disclosure through legal channels and experienced defeat in two separate proceedings. Documentation ultimately obtained in 2023 revealed that during March 2021, Tether maintained the majority of its then-$40.6 billion reserve portfolio at Deltec Bank, headquartered in the Bahamas. The holdings demonstrated substantial concentration in commercial paper instruments issued by Chinese financial institutions, including Agricultural Bank of China, Bank of China Hong Kong, and ICBC.
The current audit initiative signals a dramatic departure from the company’s previous opposition to public transparency.
American Market Entry and Capital Raising Strategy
The audit campaign emerges as Tether positions itself for entry into the United States marketplace. Simultaneously, the organization seeks to secure between $15 billion and $20 billion in financing, pursuing a $500 billion corporate valuation.
The Financial Times had earlier disclosed that potential investors expressed reservations, citing concerns regarding valuation metrics and regulatory uncertainties.
Tether’s enhanced transparency drive stems partially from emerging American regulatory requirements. The GENIUS Act, enacted into law this past July, created the nation’s first federal governance structure for stablecoin issuers.
Operating under this legislative framework, Tether has already introduced a regulation-compliant dollar-backed digital asset designated as USAT.
The El Salvador-domiciled enterprise is now strategically aligning itself to function within American regulatory parameters as digital assets achieve broader integration into traditional financial infrastructure.
Tether has yet to issue official public statements regarding the KPMG engagement.
