Tether closed a historic KPMG audit with a "clean" opinion, but the reserve cushion dropped by 40%.
The issuer of the largest stablecoin has, for the first time in its history, undergone a full financial audit, and this event has become a landmark for the entire market. The audit firm KPMG (USA) issued Tether a "clean" opinion on its 2025 financial statements — the highest form of confirmation of the reliability of financial documentation. However, behind this triumph lies a troubling signal: the company's key reserve strength metric has nearly halved.
What exactly KPMG confirmed
The review covered the operations of Tether International, S.A. de C.V. for the reporting period ending December 31, 2025. The auditors did not merely examine transactions and ownership documents — they conducted a full audit of the balance sheet, income statement, capital structure, and cash flows. Particularly noteworthy is the fact that KPMG representatives personally counted and inspected all the gold bullion in the company's accounts, rather than relying solely on formal custodian reports.
According to the audit opinion, as of December 31, 2025, Tether's reserves exceeded its liabilities by $6.814 billion. The company's CEO, Paolo Ardoino, called the result "unprecedented" and emphasized that the audit was conducted under AICPA standards without a single finding.
The safety cushion is melting
However, looking at the latest data, the picture changes. In the most recent quarterly report from BDO, published on July 31, excess reserves as of June 30, 2026, amounted to only $4.11 billion. This is roughly 40% less than the amount confirmed by KPMG. At the same time, Tether recorded a net operating profit of about $1.5 billion for the second quarter — a paradox that points either to unrealized losses or to withdrawals from reserve segments.
The most likely culprit is gold. After the January peak, the spot price of the metal has fallen by more than 20%, and Tether holds a significant portion of its reserves precisely in gold and bitcoin, alongside Treasury bills. The company's tokenized gold asset tracks the same reserves that KPMG manually counted.
What the "clean" opinion does not resolve
It is important to understand the boundaries of this audit. The legal entity that underwent the attestation and the group covered by the review do not fully coincide. In its fourth-quarter 2025 report, Tether reported a profit of $6.34 billion for the same balance sheet date — that is $480 million less than the audited figures. The company has still not disclosed the financial statements themselves: without notes, accounting policies, and the reserve structure, external analysts cannot independently verify the numbers.
Furthermore, the audit opinion does not address Tether's ability to redeem assets, liquidity under stress scenarios, or counterparty risks. These issues become especially acute amid the finalization of the GENIUS Act rules — the future U.S. regulatory framework that will set standards for stablecoin issuers.
USDT's market capitalization currently stands at about $183 billion, making it the third-largest crypto asset. Tether has accomplished a task that critics called impossible, but the real test is the publication of the actual documents signed by KPMG and the next reporting cycle.
My assessment: a "clean" opinion is a powerful signal of trust, but the market needs not just final figures, but full transparency. A 40% reduction in the cushion amid growing profits is an anomaly that deserves an explanation. Until Tether discloses the details, skeptics will have grounds for questions, and this pressure will not go away.