Tether Passed the Largest Audit in Its History: Reserves Confirmed, But There Are Nuances
The KPMG US audit has become a landmark event for the entire stablecoin market. For the first time in its history, USDT issuer received an unqualified ("clean") audit opinion on its financial statements for 2025. This is not just a formality, but a crucial step toward legitimization in the eyes of institutional investors.
The audited statements demonstrate the company's solid position: as of December 31, 2025, Tether's aggregate reserves exceeded liabilities by $6.814 billion. For comparison, in the last quarterly report, this "safety cushion" was estimated at $4.11 billion, highlighting the scale of the work done.
What exactly did KPMG review?
The audit covered the operations of Tether International, S.A. de C.V. for the reporting period ending December 31, 2025. KPMG specialists did not limit themselves to a superficial review. They conducted an in-depth analysis of transactions, ownership documents, asset valuations, and internal control systems. Moreover, the auditors personally recounted and inspected all gold bars in the company's accounts, indicating an unprecedented level of thoroughness.
This step marks a paradigm shift. Previously, Tether had for years defended its practice of publishing quarterly attestations from the audit firm BDO instead of a full audit. The switch to KPMG in March signaled readiness for greater transparency, and now we are seeing the result.
Why did the "cushion" shrink?
However, despite the "clean" opinion, there are curious discrepancies. According to the BDO report dated July 31, excess reserves as of June 30, 2026, stood at $4.11 billion. This is roughly 40% below the amount confirmed by KPMG auditors. This discrepancy could point to unrealized losses or withdrawals from other parts of the reserve.
A likely cause of the reduction is the decline in gold prices — one of the key assets in Tether's reserves. The spot price of the precious metal has fallen more than 20% from January peaks. Given that the company holds a significant portion of its reserves in gold and bitcoins, the volatility of these assets directly impacts the final figures.
What does a "clean" audit not solve?
It is important to understand the limits of this opinion. The audited legal entity and the group covered by the attestation do not fully coincide. In its Q4 2025 report, Tether reported a profit of $6.34 billion for the same balance sheet date — approximately $480 million less than the audited figures. Additionally, the company did not disclose the financial statements themselves, which limits opportunities for external analysis.
The audit opinion does not address the company's ability to fulfill redemption requests, liquidity under stress conditions, or counterparty risk. These issues become particularly acute as the GENIUS Act rules — the future U.S. regulatory framework for stablecoin issuers — reach the final stretch.
USDT's market capitalization stands at approximately $183 billion, making it the third-largest crypto asset. The company has cleared the bar that critics called unattainable. But the real test is the next report and the publication of those very documents signed by KPMG.
My professional opinion: this audit is a powerful signal to the market, but not a panacea. Transparency in the form of full financial statements and disclosure of reserve methodology will be the next frontier that determines trust in Tether amid tightening regulation.