Tether said it has selected—but did not name—a “Big Four” accounting firm to perform its first full audit of reserves, a long-awaited review after years of scrutiny.
In a Tuesday notice, Tether said the unnamed firm will complete a “full independent financial statement audit” for the stablecoin issuer, including for its US dollar–pegged USDt (USDT). The accounting industry’s “Big Four” are Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers.
Tether said the firm was “selected through a competitive process,” according to chief financial officer Simon McWilliams. Cointelegraph reached out for comment but had not received a response at the time of publication.
The audit will examine assets, reserves and tokenised liabilities and will assess Tether’s systems, internal controls and financial reporting.
“For the hundreds of millions of people and businesses who rely on USDT every day, this audit is not just a compliance exercise; it is about accountability, resilience, and confidence in the infrastructure they depend on,” said Tether CEO Paolo Ardoino.
USDT had a market capitalization of about $184 billion as of Tuesday, making it the largest stablecoin—more than twice the size of Circle’s USDC, which had a market cap near $78 billion. A recent report from Japanese bank Mizuho said Circle’s USDC overtook USDT in transaction volume for the first time since 2019.
Why Tether’s reserves are under scrutiny
Tether maintains that its tokens are pegged 1:1 to matching fiat currencies and are backed 100% by Tether’s reserves. Ardoino has disclosed that a significant portion of reserves is held in U.S. Treasurys, while a report from BDO Global showed holdings that also include physical gold, Bitcoin (BTC), and secured loans.
Concerns over Tether’s financial stability resurfaced in December when BitMEX founder Arthur Hayes warned USDT could face trouble if reserve asset values fell. CoinShares’ head of research, James Butterfill, pushed back on those claims.
The full-audit announcement follows passage of the GENIUS Act in the United States, which establishes a framework for payment stablecoins. Tether launched its GENIUS-compliant USAt stablecoin in January, with Anchorage Digital Bank serving as the issuer.
Cointelegraph is committed to independent, transparent journalism. This article was produced in accordance with Cointelegraph’s Editorial Policy; readers are encouraged to verify information independently. Read the Editorial Policy at https://cointelegraph.com/editorial-policy
