Key takeaways
- Tether has engaged KPMG for its first full independent financial statement audit, with PwC assisting to prepare internal systems.
- A full audit would extend beyond past reserve attestations to scrutinize broader financial reporting and internal controls at scale.
- The move aligns with Tether’s push into a regulated U.S. path under the GENIUS Act and the launch of USAT for the domestic market.
Tether has quietly taken a major step toward greater financial transparency: sources say the stablecoin issuer has selected KPMG to conduct its first full Big Four-style financial statement audit, while PwC has been brought in to help prepare internal systems ahead of that audit. The company had announced on March 24 that it had formally engaged a Big Four firm but did not name which one at the time.
Why this matters
Until now, Tether’s public reporting relied on an ISAE 3000 assurance attestation covering its reserves. As of December 31, Tether International reported $192.9 billion in total assets and $186.5 billion in total liabilities — leaving an excess reserve buffer of about $6.34 billion. A full financial statement audit would go far beyond that scope, examining the issuer’s overall financial statements, the assets backing USDT, liabilities, and internal controls — all at a scale driven by roughly $186.5 billion in outstanding liabilities tied mainly to USDT.
The company’s CFO, Simon McWilliams, has said Tether already operates at Big Four audit standards and that the audit will be delivered. People familiar with the process say bringing in both KPMG and PwC is intended to elevate internal reporting and controls to the level required for a formal audit.
A U.S. strategy in the background
This audit push is unfolding alongside Tether’s efforts to formalize a U.S. product path under the GENIUS Act. In January, Tether launched USAT, a dollar-backed stablecoin issued for the U.S. market by Anchorage Digital Bank. Tether has stressed that USDT will continue to operate globally while USAT is designed specifically for domestic use — giving the company a regulated U.S. route without replacing its existing token.
What it could mean
Taken together, the audit and USAT signal that Tether is aiming to fit more neatly within a federal stablecoin regime that demands stricter reporting and controls. Beyond addressing long-standing scrutiny over reserves, a successful full audit would shape how investors, counterparties, and regulators evaluate Tether’s financial position and governance.
Capital-raising remains open
The audit may also factor into broader capital discussions. There had been public talk of a potential fundraising round of up to $20 billion, a figure that Paolo Ardoino later described as hypothetical rather than a set target. Still, a full audit would likely influence any future capital-raising, partnerships, or regulatory negotiations by providing a more robust financial foundation.
Bottom line
Tether’s move to engage KPMG (with PwC support) for a full audit is one of the clearest signs yet that the firm is trying to trade opacity for formal scrutiny as it expands its footprint in the U.S. market. The audit’s outcome will be closely watched by the crypto industry, investors and regulators alike.
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