Tether has engaged KPMG to perform the first full financial-statement audit of its USDT stablecoin and retained PwC to help prepare its internal systems, people familiar with the matter told the Financial Times.
The move follows Tether’s earlier announcement that it had formally engaged a Big Four firm for an inaugural audit, although the company did not initially name the auditor. Until now, Tether has relied on periodic reserve attestations from BDO Italia, which has produced USDT assurance reports since 2022.
Sources say the planned KPMG audit will go beyond the snapshot-style reserve attestations Tether has provided in the past and is expected to examine assets, liabilities and internal controls across the company’s balance sheet. Tether described the effort as “the biggest ever inaugural audit in the history of financial markets.” The company also said KPMG was chosen after a competitive selection process and that it already operates to Big Four audit standards. No public timeline for completing the audit has been announced.
The announcement comes as Tether considers a major equity raise and seeks to expand in the U.S. under the federal stablecoin framework proposed in the GENIUS Act. USDT is the largest stablecoin by market capitalization, with roughly $185 billion in circulation. In January, Tether said it held more than $122 billion in direct U.S. Treasury securities and about $141 billion in total Treasury exposure when related instruments such as overnight reverse repurchase agreements are included.
Cointelegraph and other outlets sought comment from Tether and KPMG; neither had responded by publication. PwC declined to comment.
The company’s decision to pursue a full audit follows a history of regulatory actions. Tether previously paid a $41 million fine to the Commodity Futures Trading Commission for statements the agency said were “untrue or misleading” about reserves, and agreed to an $18.5 million settlement with the New York Attorney General related to allegations it concealed losses and mischaracterized USDT’s backing. Under the NYAG settlement, Tether was required to provide detailed quarterly reserve reports for two years and later withdrew its opposition to releasing those reports.
Reporting on this development is ongoing; readers are encouraged to verify details as the audit progresses and as Tether, KPMG and PwC may release further information.