Key Highlights
- KPMG has been engaged by Tether to perform a comprehensive audit of USDT reserves totaling $185 billion
- PwC will assist in preparing Tether’s operational infrastructure in advance of the audit process
- This audit represents a significant upgrade from the monthly attestation reports currently issued by BDO Italia
- The company is pursuing U.S. market entry while seeking to secure $15-20 billion in funding at a $500 billion company valuation
- These developments come in response to the GENIUS Act, America’s inaugural federal regulatory framework for stablecoins
The issuer of USDT, the world’s most widely adopted stablecoin, has engaged Big Four accounting firm KPMG to execute a comprehensive reserve audit. Additionally, PwC has been enlisted to optimize internal operational systems, the Financial Times has reported.
This development represents a pivotal shift for an organization that has confronted scrutiny regarding financial disclosure practices throughout its history spanning more than ten years.
With approximately $185 billion in tokens currently circulating, USDT dominates crypto trading activity and ranks among the most substantial institutional holders of United States Treasury securities.
Previously, Tether’s reserve transparency has consisted solely of monthly attestation reports compiled by BDO Italia. An exhaustive KPMG audit would provide substantially deeper insight, examining asset holdings, liability structures, governance protocols, and financial reporting mechanisms.
CFO Simon McWilliams stated this week that the organization has been “already operating at Big Four audit standard” and assured stakeholders that “the audit will be delivered.” While Tether had previously confirmed retention of a Big Four firm, KPMG’s identity wasn’t publicly disclosed until the Financial Times report.
A Complicated Track Record on Financial Disclosure
Historically, Tether has resisted transparency initiatives. During 2021, CoinDesk submitted a freedom of information request to New York’s Attorney General seeking comprehensive information about USDT’s reserve assets.
Tether mounted legal opposition to disclosure but was unsuccessful in two separate court proceedings. Documentation eventually obtained in 2023 revealed that during March 2021, the company maintained the majority of its $40.6 billion reserve portfolio with Deltec Bank, headquartered in the Bahamas. Reserve holdings featured significant allocations to 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 previous reluctance toward public financial transparency.
American Market Entry and Capital Raising Strategy
This audit initiative coincides with Tether’s strategic preparation for entering the United States market. Simultaneously, the organization is pursuing a capital raise between $15 billion and $20 billion, seeking to achieve a $500 billion corporate valuation.
According to prior Financial Times coverage, potential investors have demonstrated caution, citing apprehensions regarding valuation metrics and compliance uncertainties.
Tether’s enhanced transparency campaign responds directly to emerging American regulation. Enacted into law this past July, the GENIUS Act created America’s first comprehensive federal regulatory structure governing stablecoin operations.
Operating under this legislative framework, Tether has already introduced USAT, a compliant dollar-backed digital token.
The El Salvador-domiciled enterprise is strategically positioning itself for compliance with American regulatory standards as cryptocurrency assets achieve broader institutional and mainstream financial integration.
Tether has yet to issue official public statements regarding the KPMG engagement.
