USDT

Tether has obtained an unqualified audit opinion from KPMG on its 2025 financial statements, marking the first complete financial audit in the stablecoin issuer’s history and closing a decade-long credibility gap with institutional investors. The milestone carries material weight for crypto market infrastructure, as regulatory and counterparty confidence in USDT underpins trillions of dollars in daily settlement volume across exchanges and platforms.

• KPMG issued an unqualified audit opinion covering full financial statements for year ended December 31, 2025, with no reservations or exceptions.
• Tether reported reserves exceeding liabilities by $6.81 billion as of audit date, with KPMG physically inspecting every individual gold bar held by the company.
• The engagement represents the first full financial statement audit in Tether’s history, distinct from prior point-in-time attestations that examined reserves quarterly but not operational financials.

• $6.81B Excess reserves over liabilities reported in audited 2025 financial statements
• 2025 Year of first full financial audit completed by Big Four firm KPMG
• $41M CFTC fine levied in 2021 for historical reserve backing failures from 2016-2018

Tether International, S.A. de C.V., the entity behind USDT, announced that KPMG U.S. has completed a full financial statement audit and rendered an unqualified opinion, the strongest conclusion an independent auditor can issue.

The audit examined Tether’s balance sheet, income statement, statement of changes in equity, and cash flow statement under US generally accepted accounting principles, with independent substantive testing applied to each component.

An unqualified opinion carries no reservations, exceptions, or caveats, meaning the auditor found no material misstatements or conditions that would qualify the opinion.

The audit covered the fiscal year ending December 31, 2025, and represents a watershed moment for an entity whose reserve backing practices have been contested by regulators and market participants for over a decade.

USDT operates as the primary dollar-denominated settlement asset across crypto markets, with quarterly attestations showing approximately $184.6 billion in outstanding tokens as of the most recent reporting period.

Institutional investors, exchanges, and custodians rely on USDT for liquidity management and cross-platform settlement, making the credibility of Tether’s reserves a systemic concern for crypto infrastructure.

KPMG’s Physical Gold Inspection Goes Beyond Custodian Attestations

The KPMG audit included procedures that extended beyond prior practices under point-in-time reserve attestations. KPMG physically counted and inspected every individual gold bar held by Tether, verifying its existence and identifying information directly rather than relying solely on third-party custodian reports.

Tether stated that this procedure “went beyond the reports supplied by custodians and counterparties,” indicating that the Big Four firm applied independent substantive testing to physical assets rather than accepting counterparty certifications at face value.

The distinction matters operationally: while quarterly attestations by BDO Italia verify that reserves exist and exceed liabilities at specific reporting dates, they do not audit the full income statement, cash flows, or operational controls.

The KPMG engagement covered all four core financial statements under GAAP, meaning the auditor examined not only the balance sheet snapshot but also how Tether generated revenue, managed expenses, and deployed capital throughout 2025. The reserves reported in the audited statements exceed liabilities by $6.81 billion, providing a buffer above the minimum required to back all USDT in circulation.

Tether’s most recent quarterly attestation, covering the second quarter of 2026, reported net operating profit of $1.5 billion and more than 146 tons of gold in physical holdings. The company also disclosed a record excess reserve buffer of $8.23 billion in its Q1 2026 attestation, the highest buffer figure on record.

These quarterly metrics fall outside the scope of KPMG’s unqualified opinion, which is limited to the 2025 audited financials.

Attestations Versus Audit: The Regulatory and Operational Divide

Tether has provided independent attestations of its reserves since 2014, but attestations and audits serve different evidentiary purposes under accounting standards.

An attestation examines whether stated reserves exist and exceed liabilities at a single point in time, typically on a quarterly basis; it does not extend to the full financial statements or the controls and processes that generate operational results.

KPMG’s engagement covers both the static position and the dynamic, the income earned, expenses incurred, and cash flows recorded throughout the entire fiscal year.

BDO Italia took over quarterly attestation responsibility from MHA Cayman in 2022, a move Tether described at the time as “the next step in the company’s path toward a complete audit.” BDO continues to prepare quarterly reserve reports, which Tether publishes regularly and which remain outside KPMG’s audit scope.

Tether also completed a SOC 2 Type 1 examination covering IT and security controls in 2024, but that engagement examined only the design and operating effectiveness of controls, not the financial statements themselves.

The CFTC’s October 2021 enforcement action against Tether provides regulatory context for the significance of this audit. The CFTC fined Tether $41 million for findings that included holding sufficient fiat reserves to back USDT in circulation for only 27.6% of the days sampled during a 26-month period from 2016 through 2018.

The order also cited misrepresentations to customers and market participants regarding the one-to-one backing of each USDT token, noting that Tether’s reserves had included unsecured receivables and non-fiat assets that did not fully satisfy its stated backing claims.

Tether’s Decade-Long Path to Big Four Credibility and Institutional Confidence

Tether announced its engagement with KPMG earlier in 2025 and has now disclosed completion of what it describes as “the largest inaugural financial audit in history.” CEO Paolo Ardoino stated: “For years, some detractors said an audit of Tether could not be completed. They said the Company refused to subject itself to the most rigorous scrutiny. We have once again proven them wrong.

Completing our financial statement audit sets a new standard for the industry and reflects the leadership we’ve brought to this market from the start.”

For years, some detractors said an audit of Tether could not be completed. They said the Company refused to subject itself to the most rigorous scrutiny. We have once again proven them wrong. Completing our financial statement audit sets a new standard for the industry and reflects the leadership we’ve brought to this market from the start.

Paolo Ardoino, Chief Executive Officer of Tether

The completion of a full GAAP audit by a Big Four firm removes a long-standing vulnerability in Tether’s institutional positioning.

Institutional custodians, exchanges, and market infrastructure providers have historically managed regulatory and reputational risk by publicly stating their comfort with quarterly attestations; an unqualified audit opinion from KPMG materially strengthens those risk assessments.

The distinction is material: custodians and institutional counterparties can now point to a Big Four auditor’s examination of not only reserve balances but also operational controls, revenue recognition, and asset management practices.

The audit opinion applies only to fiscal year 2025 and does not extend to 2026 or beyond, meaning Tether will need to conduct subsequent audits to maintain continuous Big Four coverage, a decision Tether has not yet publicly addressed. Market participants should monitor whether KPMG has committed to auditing subsequent years, whether other stablecoin issuers will now face institutional pressure to pursue similar Big Four audits, and whether regulators including the SEC, CFTC, and international authorities view this audit as closing the outstanding concerns raised in the 2021 CFTC order or whether additional reserve verification requirements will be imposed on Tether or the broader stablecoin industry.