Tether Hires KPMG to Audit USDT Reserves as U.S. Stablecoin Rules Take Effect

TLDR

• Tether has hired KPMG to conduct a full audit of its $185 billion USDT stablecoin reserves
• PwC has been brought in to prepare Tether’s internal systems ahead of the audit
• The audit will go further than the current monthly attestations provided by BDO Italia
• Tether is planning a U.S. expansion and looking to raise up to $20 billion at a $500 billion valuation
• The move follows the GENIUS Act, which created the first federal stablecoin framework in the U.S.

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Tether, the company behind the world’s largest stablecoin USDT, has hired accounting firm KPMG to carry out a full audit of its reserves. It has also brought in PwC to help prepare its internal systems, according to the Financial Times.

The news marks a major step forward for a company that has faced questions about its financial transparency for over a decade.

USDT currently has around $185 billion in circulation. It is widely used across crypto markets and is one of the largest buyers of U.S. Treasury bills.

Until now, Tether’s reserve disclosures have been limited to monthly attestations from BDO Italia. A full audit by KPMG would go much further, covering assets, liabilities, internal controls, and reporting systems.

Tether’s CFO Simon McWilliams said this week that the company was “already operating at Big Four audit standard” and that “the audit will be delivered.” Tether had confirmed the Big Four engagement earlier but did not name the firm until the Financial Times identified it as KPMG.

Tether’s History With Transparency

Tether has fought transparency efforts in the past. In 2021, CoinDesk filed a public records request with the New York Attorney General’s office seeking details on USDT’s reserve composition.

Tether challenged the release in court and lost twice. Documents finally received in 2023 showed that as of March 2021, Tether held most of its then $40.6 billion in reserves at Bahamas-based Deltec Bank. The reserves had heavy exposure to commercial paper from Chinese banks including Agricultural Bank of China, Bank of China Hong Kong, and ICBC.

The new audit effort represents a clear shift from that earlier resistance to public disclosure.

U.S. Expansion and Fundraising Plans

The audit push comes as Tether prepares to expand into the U.S. market. The company is also looking to raise between $15 billion and $20 billion, targeting a $500 billion valuation.

The Financial Times previously reported that investors had shown hesitation, with concerns around pricing and regulatory risk.

Tether’s push for greater transparency is partly driven by new U.S. regulation. The GENIUS Act, signed into law last July, established the first federal framework for stablecoins in the United States.

Under that law, Tether has already launched a compliant dollar-pegged token called USAT.

The El Salvador-based company is now positioning itself to operate within U.S. regulatory requirements as crypto gains wider acceptance in mainstream financial markets.

Tether has not yet publicly commented on the KPMG appointment.

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