Tether is moving ahead with its first full financial statement audit as the stablecoin issuer faces fresh scrutiny over reserves, U.S. expansion plans, and fundraising goals.
KPMG is the audit firm selected for the review, while PwC is helping Tether prepare its internal systems, controls, and reporting processes.
The reported engagement marks a shift from the reserve attestations Tether has used for years and places the company closer to the reporting standards expected under the new U.S. stablecoin framework.
Tether moves from attestations to full audit
The reported KPMG mandate follows Tether’s announcement on Tuesday that it had engaged a Big Four accounting firm for its first full audit. At the time, the company did not name the firm, but it described the work as “the biggest ever inaugural audit in the history of financial markets.”
The Financial Times later identified KPMG as the selected auditor, citing people familiar with the matter.
PwC has also reportedly been brought in to help Tether prepare for the review. That work includes internal systems, controls, reporting processes, governance, risk management, and compliance structures.
The audit itself is expected to cover Tether’s full balance sheet, including U.S. Treasuries, cash equivalents, digital assets, and tokenized liabilities.
This process is broader than the reserve attestations Tether has published since USDT launched in 2014. Those attestations, most recently issued through BDO Italia on a monthly and quarterly basis, confirm reserve positions at a given point in time. They do not amount to a full financial statement audit under generally accepted auditing standards.
Tether executives have framed the audit as a planned step rather than a reaction to market pressure. Chief executive Paolo Ardoino said,
“Tether’s mission has always been to build trust through action.”
Chief financial officer Simon McWilliams said the audit firm was selected through a competitive process and stated that the review will be delivered.
Reserve questions remain central to the story
The audit effort comes after years of questions about Tether’s reserve claims. In 2021, the New York Attorney General fined Tether over findings that the company had misrepresented the full dollar backing of USDT during an earlier period. Legal records from that case showed exposure to commercial paper and named counterparties that drew concern from market observers.
Tether has since changed the makeup of its reserves. The company shifted toward short-term U.S. Treasuries and began publishing more detailed transparency reports.
It has said these reports provide regular insight into the assets backing USDT, but critics have continued to note that attestations are not the same as a full audit.
The company’s size keeps reserve transparency at the center of the discussion. USDT has a market capitalization above $184 billion and remains the largest stablecoin by circulation (per CoinGecko’s data).
Moreover, it also serves as a major source of liquidity across crypto trading venues, which means questions around its reserves often extend beyond Tether itself and into the wider market.
Tether has also indicated that its exposure to Treasury is high. When related instruments were included, the company had over 122 billion of direct U.S Treasury securities, and approximately 141 billion total exposure to the Treasury.
Those claims would be tested by a full audit of a wider examination of assets, liabilities, and internal controls.
U.S. expansion adds urgency to compliance work
The reported audit engagement by Tether also follows as the company develops its U.S. strategy. In January 2026, Tether introduced USAT, a stablecoin intended to meet the companies of the federal stablecoin law, the GENIUS Act, signed in July 2025. Under that law, a national framework was established, by which stablecoin issuers were present in the United States.
Under that framework, foreign stablecoin issuers seeking U.S. registration are widely expected to meet stricter reserve verification and reporting rules. A Big Four audit is seen as one way to align with those requirements. While Tether has not publicly tied the audit to a formal filing timeline, the work appears to fit the company’s U.S. market plans.
The company has also been building toward this stage internally. Simon McWilliams was appointed chief financial officer in early 2025 with a mandate linked to preparing Tether for higher accounting and reporting scrutiny.
His role has been presented as part of a broader effort to strengthen the company’s financial reporting structure ahead of a full audit process.
So far, no public completion date has been announced. Full audits involving crypto-linked assets and tokenized liabilities can take months, especially when they involve new control systems and documentation standards. Tether has only said that the work is underway.
Audit push comes as fundraising plans face caution
The audit effort also arrives as Tether weighs larger capital market goals. As previously reported on March 13, the company had explored raising as much as $20 billion in equity at a valuation near $500 billion.
Those discussions have reportedly slowed, with investors and bankers pushing for audited financial statements before taking part.
That link between transparency and fundraising gives the KPMG and PwC engagements added weight. A completed audit could help answer questions from prospective investors who want a fuller view of Tether’s books before committing capital.
It could also shape how traditional financial institutions view the company as it seeks a broader presence in regulated markets.
The market has already reacted to Tether’s audit announcement in other ways. Circle, one of Tether’s main stablecoin rivals, came under pressure after Tether said it had formally engaged a Big Four firm. On the day of that announcement, Circle shares fell down by about 19% from the prior close.