What Did KPMG Audit At Tether?
Tether has completed its first full independent financial statement audit, with KPMG U.S. issuing an unqualified opinion on the 2025 financial statements of Tether International, the entity that issues the USDT stablecoin.
An unqualified opinion, commonly called a clean audit opinion, means the auditor issued its conclusion without reservations, exceptions or qualifications. KPMG confirmed that its opinion covered Tether International’s financial statements for the year ended Dec. 31, 2025 and was conducted under standards established by the American Institute of Certified Public Accountants.
The audit covered the issuing entity’s complete financial statements rather than only a point-in-time examination of its stablecoin reserves. Tether said KPMG reviewed the balance sheet, including assets backing USDT and liabilities represented by tokens in circulation, as well as the income statement, changes in equity and cash flow statements.
KPMG also examined transactions, systems, ownership records, valuations, counterparties and supporting documentation. Tether said the auditor physically inspected and counted individual gold bars held by the company rather than relying only on reports supplied by custodians or other counterparties.
“KPMG did not simply review a set of headline figures,” Tether CEO Paolo Ardoino said. “KPMG conducted a full and thorough audit in accordance with AICPA standards – examining the assets, transactions, systems, documentation, and other evidence supporting our financial statements.”
Why Is A Full Audit Different From Tether’s Attestations?
Tether has published regular reserve attestations for several years, currently prepared by BDO Italia. Those reports provide an independent snapshot of reserves and liabilities at a specified date, but they are narrower than an audit of complete annual financial statements.
The distinction has mattered because Tether first promised a full financial audit in 2017. It hired Friedman LLP at the time, but the relationship ended before an audit was completed. Company executives continued to say in subsequent years that a full audit would eventually be delivered.
Tether announced in March that it had hired a Big Four accounting firm to perform its first financial audit but did not identify the auditor at the time. The company has now confirmed KPMG as the firm responsible for the completed review.
The audited statements reported that reserves exceeded liabilities by $6.8 billion at the end of 2025, according to Tether Chief Financial Officer Simon McWilliams. For USDT holders, that excess is important because the stablecoin depends on the issuer maintaining enough assets to meet redemption obligations.
Investor Takeaway
The clean KPMG opinion gives investors a broader independent review of Tether International than the reserve attestations previously available. The next question is whether annual audits become a recurring part of Tether’s reporting as USDT grows more important to global crypto liquidity.
Why Does The Audit Matter For USDT?
USDT is deeply embedded in cryptocurrency trading, settlement and dollar-denominated liquidity, making the quality and accessibility of Tether’s financial information relevant beyond holders of the token itself.
Tether has also faced years of scrutiny over the composition and disclosure of its reserves. In 2021, the company paid $18.5 million to settle with the New York Attorney General over claims related to its reserves. The Commodity Futures Trading Commission separately imposed a $41 million penalty over misleading statements that USDT was fully backed by U.S. dollars.
The move from periodic attestations to a full financial statement audit therefore addresses one of the longest-running transparency questions surrounding the issuer. A clean audit opinion does not remove market, custody, counterparty or regulatory risks, but it provides a more extensive independent examination of the company’s reported financial condition.
That may become increasingly relevant as stablecoins move closer to mainstream financial infrastructure and regulators demand stronger reserve, accounting and reporting standards from issuers.
What Should Investors Watch Next?
The key test will be whether Tether repeats the process for 2026 and future reporting periods. A single audited year provides more information than an attestation, but recurring audits would allow investors, counterparties and regulators to compare reserve quality, liabilities, profitability and cash flows over time.
Investors will also be watching how Tether’s reserve portfolio develops. The company holds assets beyond cash and U.S. government debt, including gold and other investments, making independent valuation and verification increasingly important as the balance sheet expands.
The audit could also help Tether when dealing with banks, institutions and regulators that require more extensive financial reporting before establishing relationships with digital asset companies.
“People may describe this as the end of a long journey, but we see it as the beginning of the next one,” Ardoino said.
For Tether, completing the audit closes a gap that had remained open since 2017. Whether it changes institutional perceptions of USDT will depend on the consistency of future audits, the composition of reserves and how the company responds to tighter stablecoin rules across major markets.
