Report: Tether Hires KPMG for First Full Financial Audit of USDT Reserves

Tether Reported to Hire KPMG for First Full USDT Audit

The Financial Times reported on Friday that KPMG is the firm selected to perform the audit, citing people familiar with the matter. Tether had announced the engagement three days earlier without naming the auditor, describing the process as “the biggest ever inaugural audit in the history of financial markets.”

The company has also reportedly retained PwC to help prepare its internal systems, controls, and reporting ahead of the review. The audit covers Tether’s full balance sheet, including U.S. Treasuries, cash equivalents, digital assets, and tokenized liabilities, along with internal controls, governance, risk management, and compliance systems.

This goes well beyond the reserve attestations Tether has issued periodically since USDT launched in 2014, most recently through BDO Italia on a monthly and quarterly basis. Attestations confirm a snapshot of reserves. They do not constitute a financial statement audit under generally accepted auditing standards.

USDT carries a market capitalization above $184 billion and is used by more than 550 million people globally. It functions as a primary source of liquidity across crypto markets and ranks among the largest holders of U.S. Treasury securities outside of sovereign governments.

Tether CEO Paolo Ardoino said in a statement: “Tether’s mission has always been to build trust through action.” CFO Simon McWilliams, appointed in early 2025 specifically to prepare the company for Big Four-level scrutiny, said the auditor was chosen through a competitive process and that the audit will be delivered.

The company has faced sustained questions about its reserves since at least 2021, when the New York Attorney General fined Tether $41 million for misrepresenting the full dollar backing of USDT. Legal records from that period showed heavy exposure to commercial paper and specific counterparties. Tether has since shifted its reserve composition toward short-term U.S. Treasuries and has published quarterly transparency reports.

The KPMG engagement follows Tether’s broader push into the U.S. market. In January 2026, Tether launched USAT, a stablecoin designed to comply with the GENIUS Act — the federal stablecoin regulatory framework signed into law in July 2025. A full audit by a Big Four firm is widely expected to satisfy the reserve verification and reporting requirements the GENIUS Act imposes on foreign stablecoin issuers seeking U.S. registration.

Separately, reports indicate Tether has paused plans for a potential $20 billion equity raise, which had been discussed at a valuation near $500 billion. Investors and bankers have pushed for audited financials before participating.

No timeline for completing or publishing the audited statements has been made public. Full audits involving crypto assets and tokenized liabilities typically take several months. Tether said the process is already underway.

The dual engagement, KPMG handling the audit, PwC supporting internal readiness, signals that Tether is treating this as a sustained compliance investment rather than a one-time exercise. Whether the finished audit confirms what its quarterly reports have long claimed remains to be seen.

FAQ 🔎

• What is KPMG auditing for Tether? KPMG is conducting a full financial statement audit of Tether’s balance sheet, reserves, internal controls, and compliance systems — not a simple attestation.
• Why does this audit matter for USDT? It is the first time Tether has undergone Big Four-level scrutiny, which could satisfy U.S. regulatory requirements under the GENIUS Act and boost institutional confidence.
• What role does PwC play in Tether’s audit process? PwC was retained separately to strengthen Tether’s internal systems and reporting ahead of the KPMG audit.
• When will Tether’s KPMG audit results be published? No completion date has been announced; audits of this complexity typically take several months.