Tether, the world’s largest stablecoin issuer, has hired KPMG, one of the Big Four accounting firms, to conduct its first full audit of its USDT reserves. It has also engaged PwC to support the preparation of its internal systems.

 

The move comes days after Tether announced plans to work with one of the Big Four firms on an inaugural audit of its stablecoin reserves. Although it did not initially name the firm, the Financial Times reported that KPMG had been selected, citing sources familiar with the matter.

 

Prior to now, Tether had, for several years, engaged BDO Italia, an Italian affiliate of the global accounting firm BDO, to conduct periodic attestations of its reserves. These attestations involved BDO Italia taking a point-in-time snapshot of Tether's USDT reserves.

 

These snapshots helped confirm that, at a specific date, Tether's reported assets, including cash, U.S. Treasuries, gold, Bitcoin, and secured loans, met or exceeded the circulating supply of USDT. They were conducted quarterly and also included details on Tether's profit, reserve composition, and excess reserves.

 

While these attestations provided a degree of transparency and accountability, they were not full, comprehensive audits, as they relied on agreed-upon procedures and did not include elements typically associated with a full audit, such as in-depth testing of internal controls, continuous transaction verification, and formal risk assessments.

 

Tether’s Expansion Goals

Apart from ensuring transparency, the audit of its reserves aligns with Tether’s U.S. expansion goals under the GENIUS framework for stablecoins.

 

Signed into law by President Trump on July 18, 2025, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act establishes a federal regulatory framework for dollar-backed payment stablecoins.

 

The framework outlines requirements that must be met by stablecoin issuers operating in the United States, including:

 

• Full reserve backing with high-quality liquid assets, such as cash and short-term U.S. Treasuries.
• Comprehensive audits and robust internal controls for larger issuers.
• Strict anti-money laundering (AML), redemption, and consumer protection requirements.
• Monthly public disclosures of reserve composition.

 

Tether, in partnership with crypto bank Anchorage Digital, launched USAT, a dollar-pegged stablecoin designed to comply with the GENIUS Act, as part of efforts to expand its presence in the U.S. market under the GENIUS framework.

 

The launch provides Tether with immediate regulatory cover, potentially making the asset more attractive to U.S. institutions that have previously avoided offshore-issued stablecoins such as USDT. Because USAT is issued by Anchorage Digital, a U.S.-based company, it has been positioned as a “made in America” product—marking a significant step in Tether’s broader U.S. expansion strategy.

 

Since comprehensive reserve audits are among the requirements for stablecoin issuers seeking to operate in the U.S., the KPMG audit helps position Tether as compliant with U.S. standards.