Tether Completes First Full Financial Audit with KPMG, Reports $6.814 Billion Reserve Surplus
Tether has marked a significant milestone by completing its first full independent financial audit, conducted by KPMG U.S. The audit, which covers Tether International's financial statements for the year ending December 31, 2025, resulted in an unqualified opinion, indicating that KPMG found no material issues with the company's financial reporting.
The audit examined Tether's balance sheet, income statement, changes in equity, cash flows, and supporting transactions, systems, and ownership records. Notably, KPMG also physically inspected and counted Tether's gold bars as part of its verification process.
According to Tether's CFO Simon McWilliams, the audited statements reveal that Tether's reserves exceeded its liabilities by $6.814 billion at the end of 2025. However, this figure contrasts sharply with Tether's most recent quarterly report, which indicated a reserve cushion of only $4.11 billion as of June 30, 2026, marking a 40% decline.
Tether's CEO Paolo Ardoino emphasized the significance of this audit, stating that it represents a major step forward for the company after years of scrutiny regarding the transparency of its reserves backing USDT. Despite the positive audit results, questions remain regarding Tether's redemption capacity and liquidity under stress, especially as regulatory frameworks for stablecoins continue to evolve in the U.S.
Updated 20:30 UTC
Tether Completes First Full Financial Audit with KPMG
Stablecoin giant Tether has successfully completed its first independent audit of reserves with KPMG U.S., marking a significant milestone after years of challenges in obtaining a Big Four audit. This audit is described as the "largest inaugural financial audit in history." Tether has faced criticism for its previous lack of transparency regarding its reserves.
Tether CEO Paolo Ardoino emphasized that this audit sets a new standard for the industry, countering claims that an audit could not be completed. The audit included a physical count and inspection of every individual gold bar held by Tether, ensuring thorough verification of assets.
In recent years, Tether has increased its gold acquisitions and holds more U.S. treasuries than some countries. Additionally, it reportedly has nearly $60 billion in Bitcoin in its reserves. Tether's USDT product now boasts a market cap exceeding $183 billion, positioning it as the third largest cryptocurrency.
FAQ
What was the outcome of Tether's first full financial audit?
Tether's first full independent financial audit, conducted by KPMG U.S., resulted in an unqualified opinion, indicating no material issues with the company's financial reporting.
How much did Tether's reserves exceed its liabilities by at the end of 2025?
At the end of 2025, Tether's reserves exceeded its liabilities by $6.814 billion.
What discrepancy was noted between Tether's audited financial statements and its quarterly report?
The audited financial statements indicated a reserve surplus of $6.814 billion at the end of 2025, while the most recent quarterly report showed a reserve cushion of only $4.11 billion as of June 30, 2026, marking a 40% decline.
What did KPMG do as part of the verification process during the audit?
KPMG physically inspected and counted Tether's gold bars as part of its verification process.
What concerns remain despite the positive audit results?
Despite the positive audit results, there are ongoing questions regarding Tether's redemption capacity and liquidity under stress, particularly as regulatory frameworks for stablecoins evolve in the U.S.
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