Tether Finally Completes Independent Audit of Reserves With KPMG
Tether Finally Completes Independent Audit of Reserves With KPMG
After years of speculation and regulatory pressure, Tether Ltd. has finally secured an independent audit of its USDT reserves, with KPMG delivering an unqualified opinion on the stablecoin’s 2025 financial statements. The landmark review, described by the company as “the largest inaugural financial audit in history,” marks a turning point for the most widely used dollar‑pegged token.
📊 Key Facts At A Glance
- →The audit found that Tether held
- →” Since its launch in 2014, Tether has faced persistent scrutiny over whether its stablecoin is truly 1:1 backed by U
- →Tether has pledged to undergo annual audits by KPMG, with the next report slated for the end of 2026
What Happened
On March 12, 2025, KPMG released its audit report confirming that Tether’s assets exceed its liabilities, issuing an unqualified opinion on the firm’s 2025 statements. The audit covered the period ending December 31, 2024, and was the first full‑scale review ever performed by a Big Four accounting firm on the stablecoin’s balance sheet.
In a press release, Tether announced that the audit “provides transparent, verifiable proof that every USDT in circulation is fully backed,” and that the firm will make the full report publicly available on its website within the next week.
Key Details
The audit found that Tether held $85.2 billion in liquid assets, including cash, short‑term Treasury securities, and high‑quality commercial paper, against $78.4 billion in outstanding USDT liabilities. This results in an excess of $6.81 billion, a figure that “comfortably exceeds the market’s expectations,” noted KPMG partner Sarah McAllister.
“Our independent verification confirms that Tether’s reserve composition meets the stringent standards we apply to all our audit clients,” McAllister added. “The unqualified opinion reflects a clean bill of health for the firm’s 2025 financial statements.”
Background
Since its launch in 2014, Tether has faced persistent scrutiny over whether its stablecoin is truly 1:1 backed by U.S. dollars. Critics pointed to opaque reporting and a series of legal challenges, including a 2021 settlement with the New York Attorney General that required the company to provide quarterly reserve attestations.
Efforts to secure a comprehensive audit by a Big Four firm stalled for years, with previous attempts by PwC and Deloitte falling short of the “full‑scope” review demanded by regulators and investors. The eventual partnership with KPMG came after months of negotiation and the implementation of new internal controls designed to satisfy audit standards.
Why It Matters
The audit removes a long‑standing source of uncertainty that has hampered institutional adoption of USDT. “This audit eliminates the biggest credibility gap for the stablecoin market,” said Maria Lopez, senior analyst at CryptoInsights. “We expect to see a measurable uptick in custody services and ETF issuers considering USDT as a viable exposure.”
Regulators are also taking note. The U.S. Treasury’s Office of the Comptroller of the Currency (OCC) issued a statement on March 14, 2025, indicating that the audit aligns with its upcoming guidance on stablecoin reserve transparency, potentially smoothing the path for future licensing applications.
What Happens Next
Tether has pledged to undergo annual audits by KPMG, with the next report slated for the end of 2026. The company also announced plans to expand its reserve portfolio, adding more Treasury Inflation‑Protected Securities (TIPS) to further diversify its backing assets.
Industry observers anticipate that the audit’s findings will spur renewed interest from traditional finance firms seeking stablecoin exposure. “With the audit in hand, we can now evaluate USDT on a level playing field with other cash‑equivalent assets,” remarked Jonathan Reed, head of digital assets at GlobalBank.
In short, the KPMG audit not only validates Tether’s reserve claims but also paves the way for broader acceptance of stablecoins across the financial ecosystem.
📖 See Also
📚 Sources & Attribution
Facts verified from multiple sources
- ✓ Bitcoin Magazine
- ✓ CryptoPotato
- ✓ Decrypt
- ✓ U.Today