Tether Completes Inaugural Full Audit with KPMG
Tether, the popular stablecoin issuer, has successfully completed its inaugural full audit with KPMG U.S., culminating in an unqualified opinion on its 2025 financial statements. This milestone, announced on Thursday, confirms that Tether boasts a significant reserve surplus amounting to $6.814 billion.
Comprehensive Review of Financial Standing
KPMG conducted a thorough examination, not just a snapshot of reserves at a single point in time, but a comprehensive review of Tether International, S.A. de C.V.‘s financial standing as of December 31, 2025, detailing operational results and cash flows throughout the entire fiscal year.
The audit covered critical components such as the balance sheet, income statement, and cash flow statements, performed in accordance with established professional standards. KPMG’s findings indicated that Tether’s financial statements provide a fair representation of its financial status under generally accepted accounting principles (GAAP) in the United States. An unqualified opinion underscores that auditors found no need for qualifications or exceptions in their conclusion, marking this as a possible clean audit for the company.
Reserves and Liabilities
Simon McWilliams, Tether’s Chief Financial Officer, highlighted that the reserves substantially surpassed the liabilities associated with its issued tokens. This conclusion is consistent with the reserve figures reported in prior attestations. Part of the audit included a detailed check of Tether’s physical gold assets, which KPMG verified with direct counts rather than relying solely on third-party confirmations.
Significance of the Audit
While Tether has provided independent attestations regarding its reserves for several years, this audit represents a more extensive evaluation, covering a full financial year compared to the limited scope of previous attestations focusing solely on specific reporting dates. The initiation of this audit process began in March after Tether enlisted a prominent Big Four accounting firm, later identifying KPMG. McWilliams, who took on the CFO role in early 2025, was instrumental in developing Tether’s internal finance structure to facilitate a comprehensive audit.
Market Presence and User Growth
As of the initial engagement in March, Tether reported a market capitalization exceeding $184 billion and a user base of more than 550 million, primarily in emerging markets where USDT is utilized for various financial transactions, including payments and remittances. Recently, Tether disclosed an increase in its user count to over 650 million—a reflection of its growing acceptance.
CEO’s Insights on the Audit Process
CEO Paolo Ardoino emphasized that KPMG went beyond merely assessing reserve figures; the firm scrutinized the integrity of transactions, asset ownership, records, and internal systems aligned with American Institute of Certified Public Accountants standards.
Tether announced this engagement as potentially the largest of its kind in the auditing industry, although KPMG’s opinion specifically assessed the accuracy of the financial statements within the parameters of U.S. GAAP.
Future Compliance and Regulatory Landscape
The reported surplus of $6.814 billion is tied exclusively to the 2025 audit, distinct from reserve figures disclosed in Tether’s earlier quarterly reports throughout 2026. By the end of Q1 2026, Tether had reported $191.8 billion in assets alongside $8.23 billion in excess reserves, with additional reports later in the year showing how the asset mix continues to evolve, including substantial holdings in Bitcoin and physical gold.
KPMG’s audit leveraged U.S. GAAP, providing American stakeholders with a familiar accounting framework. This audit opinion is separate from considerations regarding USDT’s adherence to emerging U.S. stablecoin regulations, such as those instigated by the GENIUS Act, signed into law in July 2025. Tether operates USDT outside of the U.S. and must therefore navigate compliance with laws affecting foreign stablecoin issuers. As regulatory bodies complete the rules determining compliance, Tether is committed to aligning with the upcoming framework, all while continuing to expand its offerings, including the introduction of USAT, a dollar-backed token tailored for the U.S. market.
