Tether Enlists KPMG for Comprehensive USDT Audit as It Eyes Expansion

By: Eva Baxter

Tether, the predominant issuer of stablecoins, has taken a significant step to bolster transparency and instill greater confidence among users and regulators by contracting KPMG for its first-ever comprehensive audit of its USDT reserves. This major move aligns with Tether's broader strategy to uplift its operational standards and transparency, aligning with industry leaders’ practices.

The collaboration with KPMG, renowned among the ‘Big Four’ accounting firms, will provide an independent and thorough review of USDT’s financial statements, a critical endeavor for Tether as it has long faced calls for a detailed audit. The Financial Times reported this development, highlighting the significance of a complete and independent evaluation of Tether’s reserves, which numerous stakeholders have eagerly anticipated. The engagement with KPMG marks a departure from the previous reliance on reserve attestations by BDO Italia, which had been responsible for periodic assurance reports since 2022. This step is essential as Tether moves to satisfy regulatory requirements and strengthen its foothold in the U.S. market.

As part of this initiative, Tether has also engaged PricewaterhouseCoopers (PwC) to assist in refining and readying its internal processes, further underscoring its commitment to meeting rigorous auditing standards. Tether's strategic moves come as it contemplates a substantial equity raise and plans to leverage the new U.S. federal regulations outlined by the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The GENIUS Act sets the framework for stablecoin regulation and presents Tether with an opportunity to expand under a structured regulatory landscape in the United States.