Tether has confirmed a formal engagement with a Big Four accounting firm to complete its first full independent financial statement audit, a step that shifts the company beyond its long-standing reliance on attestations. The announcement, released on March 24, frames the audit as a milestone not only for the company but for the broader digital asset sector.
“At a scale rarely seen outside the world’s largest sovereign institutions and encompassing a uniquely complex mix of digital assets, traditional reserves, and tokenised liabilities, this audit marks a defining moment not only for Tether, but for the evolution of modern finance itself,” the company stated.
The audit will cover reserves that back USD₮, the firm’s flagship stablecoin, which holds a market capitalization above $184 billion. Tether reports a global user base of more than 550 million.
KPMG engagement and PwC support emerge
While Tether did not initially name the auditing firm, reporting from the Financial Times identified KPMG as the auditor tasked with conducting the review. The same report states that PwC will assist with preparing internal systems for the audit.
This development answers a question that has followed Tether for years. The company had previously relied on attestations from BDO Italia, which confirmed reserve balances at specific points in time but did not provide the comprehensive scope of a full financial audit.
From scrutiny to structural changes
The move comes after a period marked by regulatory pressure and settlement agreements. In 2021, Tether reached an $18.5 million settlement with the New York Attorney General over reserve disclosures. The same year, it paid a $41 million fine to the Commodity Futures Trading Commission related to statements about its backing.
Those events placed Tether under continued scrutiny regarding transparency and governance. The latest audit initiative reflects structural changes inside the company, including expanded financial controls and leadership adjustments. The appointment of Chief Financial Officer Simon McWilliams in 2025 formed part of that effort.
“The Big Four Firm was selected through a competitive process because the organisation is already operating at Big Four audit standard; the audit will be delivered,” McWilliams said in the company statement.
Scale and complexity define the audit scope
The audit process will examine a balance sheet that includes digital assets, traditional financial instruments, and tokenized liabilities. Tether has emphasized that its reserves remain highly liquid and conservatively managed, with earnings retained rather than distributed. The company stated that affiliated holding structures provide additional flexibility to support USD₮ stability.
During onboarding, audit firms conducted reviews of Tether’s internal systems, financial reporting, and control frameworks. The company said the process attracted attention from multiple firms due to the scale and complexity involved.
Tether also confirmed that it will move listed securities in the coming days as part of reserve optimization. The audit aims to provide full visibility into the composition and strength of those reserves.
Fundraising plans pause as audit progresses
The audit has direct implications for Tether’s capital strategy. Plans to raise between $15 billion and $20 billion at a valuation near $500 billion have slowed as the company awaits audit results. Reporting indicates that the target may have been revised to $5 billion.
Prospective investors have sought greater financial transparency during the fundraising process. Some participants have indicated willingness to proceed without a completed audit, though the company has not confirmed timelines for either the audit or the capital raise.
Tether reported approximately $10 billion in profit for 2025. The company has used those resources to expand investments across sectors that include artificial intelligence, energy, and media.
Stablecoin market context and competitive pressure
USD₮ remains the largest stablecoin in circulation. Total stablecoin supply stands near $298.9 billion, with USD₮ accounting for the majority share. CoinMarketCap data shows Circle, which issues USDC, follows with a market capitalization of nearly $80 billion.
Stablecoins have gained traction as payment tools that support faster and lower-cost transactions. Regulatory frameworks have also advanced, with new legislation in the United States placing stablecoins under federal supervision.
Tether has positioned its audit as part of a broader push toward institutional alignment. The company has also highlighted cooperation with law enforcement, efforts to freeze illicit funds, and ongoing compliance system upgrades.
Leadership frames audit as accountability step
CEO Paolo Ardoino described the audit as a culmination of internal efforts to meet global financial standards.
“Trust is built when institutions are willing to open themselves fully to scrutiny,” Ardoino said. “This audit represents years of work to strengthen our systems so that Tether can meet the highest standards applied in global finance.”
The company has framed the initiative as a shift from minimum transparency requirements toward full accountability. Attestations remain common among stablecoin issuers, but a full audit introduces deeper verification across financial statements.
What comes next
The outcome of the audit will shape Tether’s next phase, including its fundraising plans and regulatory positioning. It will also test whether the company can align its operations with the expectations applied to large financial institutions.
The process carries weight beyond Tether. The scale of USD₮ and its role in global crypto markets place the audit at the center of ongoing debates about transparency in digital finance.
Gunel Ismayilova
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