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New audit milestone with big‑four backing
Tether has hired KPMG to conduct its first full audit of USDT reserves.
“Tether has selected KPMG to conduct a full audit of its $185 billion USDT stablecoin reserves and hired PwC to help prepare its internal systems ahead of the audit.”
PwC is helping prepare internal systems ahead of the audit.
The company is pursuing a U.S. expansion and potential fundraising in the order of $15–20 billion.
This move unfolds within a regulatory frame shaped by the GENIUS Act framework that governs U.S. stablecoins.
Audit scope and reserve mix
The audit scope is described as comprehensive, expanding beyond attestations to review assets, liabilities, internal controls, and reporting systems.
The audit will examine the makeup of reserves such as U.S. Treasuries, gold, crypto holdings, and loans.
Some analyses emphasize a tripartite reserve structure that can include tokenized government bonds.
Auditors will examine both issued USDT and the underlying assets.
Regulatory frame and fundraising plans
The GENIUS Act, in particular, imposes new requirements on large stablecoin issuers, including monthly reserve attestations and annual independent audits.
“The GENIUS Act, signed into law in July 2025, imposes new requirements on large stablecoin issuers, including mandatory monthly reserve attestations and annual independent audits.”
MoneyCheck notes that Tether plans a U.S. expansion and seeks to raise between $15–20 billion amid investor concerns.
CoinGape highlights a regulatory context including the GENIUS Act and CLARITY Act discussions shaping stablecoin reporting.
The Financial Times’ reporting on the audit is positioned within this regulatory backdrop, signaling alignment with U.S. market expectations.
Historical scrutiny and risk
Past scrutiny includes the 2021 CFTC penalty for misrepresenting reserve backing.
Critics have long questioned the liquidity and composition of reserves, including exposure to non‑cash instruments.
Some observers frame this as a normalization process for stablecoins in mainstream finance, while others warn that the structural risk remains contingent on reserve quality.
Timeline and market impact
The Defiant notes that no completion timeline was disclosed for the audit.
“No timeline for completion was disclosed in today’s announcement.”
The audit is described as potentially the largest inaugural audit in financial markets, signaling a learning curve for the sector.
Observers expect that the engagement could raise the bar for other issuers and set a benchmark for transparency.