Tether Taps KPMG for Inaugural Full Audit Amidst Major Equity Raise and US Market Ambitions

In a significant move towards greater transparency and regulatory compliance, stablecoin giant Tether has appointed KPMG, one of the "Big Four" global accounting firms, to conduct its first full audit of USDT’s financial statements. Simultaneously, Tether has engaged PwC to bolster its internal systems, according to sources familiar with the matter. This development, reported by the Financial Times, marks a pivotal step for the company, which has faced years of scrutiny regarding the backing of its flagship dollar-linked token.

The decision to undergo a comprehensive audit by a reputable Big Four firm follows Tether’s recent announcement on Tuesday confirming its engagement with a major accounting firm for an inaugural financial statement audit, though the provider was not initially named. This transition from periodic reserve attestations, previously provided by BDO Italia, the Italian member firm of the BDO global accounting network, to a full audit signifies a heightened commitment to providing stakeholders with a more detailed and robust assurance of its financial health. BDO Italia had been issuing USDT assurance reports since 2022.

This strategic pivot by Tether occurs at a critical juncture for the company. Tether is reportedly exploring a substantial equity raise and is also planning a significant expansion into the United States market. This push into the US is particularly noteworthy as it coincides with the potential implementation of a new federal stablecoin framework, envisioned by the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. A full audit by a firm of KPMG’s caliber is expected to be a crucial element in navigating the evolving regulatory landscape and building trust within the US market.

USDT, the largest stablecoin by market capitalization, boasts approximately $185 billion in circulation, as per data from CoinGecko. The stablecoin’s reserves have been a subject of intense interest. In January, Tether disclosed holdings of over $122 billion in direct US Treasury securities, with a total Treasury exposure, including related instruments like overnight reverse repurchase agreements, reaching approximately $141 billion. This substantial allocation to US Treasuries underscores Tether’s significant role in the broader financial ecosystem.

A comprehensive audit by KPMG is anticipated to delve deeper than mere snapshots of reserves. It is expected to scrutinize Tether’s assets, liabilities, and internal controls across its extensive balance sheet. Tether itself has characterized this undertaking as "the biggest ever inaugural audit in the history of financial markets," signaling the scale and significance of the process. The company has stated that the Big Four firm was selected through a competitive bidding process and that Tether already operates under "Big Four audit standards." However, a definitive timeline for the completion of this landmark audit has not yet been publicly disclosed.

The appointment of KPMG and PwC comes amidst ongoing discussions about Tether’s future funding and valuation. Reports from September 2025 by Bloomberg suggested that Tether was considering raising as much as $20 billion in new equity, with an implied valuation of $500 billion. While Tether CEO Paolo Ardoino refuted the specific figure of $20 billion in equity in February, he maintained the company’s $500 billion valuation target, citing its profitability. The enhanced transparency brought about by a full audit is likely to be instrumental in supporting these ambitious financial objectives.

Tether’s history is also marked by regulatory actions aimed at improving its transparency and reserve disclosures. The company previously paid a $41 million fine to the Commodity Futures Trading Commission (CFTC) for what the regulator described as "untrue or misleading statements" regarding its reserves. In a separate settlement, Tether agreed to pay $18.5 million to the New York Attorney General (NYAG) following allegations of concealed losses and misleading investors about USDT’s backing. As part of the NYAG settlement, Tether was mandated to provide detailed quarterly reserve reports for two years, a step that contributed to increased public disclosure.

The engagement of KPMG and PwC signifies Tether’s proactive approach to addressing past concerns and aligning itself with the highest standards of financial reporting and corporate governance. As the cryptocurrency market matures and regulatory oversight intensifies, such measures are becoming increasingly crucial for large-scale stablecoin issuers. The successful completion of this inaugural full audit by KPMG is poised to be a landmark event, potentially setting a new benchmark for transparency and accountability within the digital asset industry. The broader implications of this move will be closely watched by investors, regulators, and market participants alike as Tether navigates its ambitious growth strategies and its push into the evolving US regulatory framework for stablecoins.

Cointelegraph reached out to both Tether and KPMG for comment but had not received a response by the time of publication. PwC declined to comment on the matter.