Key Takeaways
- KPMG has been engaged by Tether to perform a comprehensive audit of its $185 billion in USDT stablecoin reserves
- PwC has been enlisted to prepare Tether’s internal infrastructure in advance of the audit process
- The examination will exceed the scope of existing monthly attestations performed by BDO Italia
- Tether aims to enter the U.S. market and is seeking to secure between $15-20 billion in funding at a $500 billion company valuation
- This strategic shift comes after passage of the GENIUS Act, establishing America’s inaugural federal stablecoin regulatory structure
The issuer of USDT, the world’s most widely circulated stablecoin, has engaged major accounting firm KPMG to execute a comprehensive examination of its reserve holdings. Additionally, PwC has been contracted to ready the company’s internal infrastructure, as reported by the Financial Times.
https://twitter.com/WuBlockchain/status/2037412739958853663?s=20
This development represents a significant milestone for an organization that has grappled with scrutiny regarding its financial openness for more than ten years.
The USDT stablecoin maintains approximately $185 billion in active circulation. It serves as a cornerstone of cryptocurrency trading activity and ranks among the largest institutional purchasers of United States Treasury securities.
Previously, [[LINK_START_0]]Tether’s[[LINK_END_0]] reserve documentation consisted solely of monthly attestations conducted by BDO Italia. A comprehensive audit performed by KPMG would substantially expand this scrutiny, examining assets, liabilities, internal governance mechanisms, and financial reporting infrastructure.
Simon McWilliams, 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 confirmed engagement with 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 Disclosure
The company has historically resisted transparency initiatives. In 2021, CoinDesk submitted a Freedom of Information request to the New York Attorney General’s office requesting comprehensive information about USDT’s reserve structure.
Tether contested the disclosure through legal channels and experienced consecutive defeats. 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 allocation to commercial paper 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
This audit initiative coincides with Tether’s preparations to penetrate the American marketplace. Simultaneously, the organization seeks to raise capital ranging from $15 billion to $20 billion, pursuing a corporate valuation of $500 billion.
Previous Financial Times reporting indicated investor reluctance, centered on concerns regarding valuation metrics and regulatory uncertainty.
Tether’s enhanced transparency efforts are partially motivated by emerging American regulatory requirements. The GENIUS Act, enacted into law last July, created the nation’s first federal regulatory architecture for stablecoin operations.
Operating under this legislative framework, Tether has already introduced USAT, a compliant dollar-backed digital token.
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 not issued official public statements regarding the KPMG engagement.
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