Tether has completed the largest financial audit in history: what the KPMG review showed and why it is not a panacea
Tether (USDT), the issuer of the largest stablecoin, has reached a historic milestone: the company received its first unconditionally positive ("clean") audit opinion from KPMG US on its 2025 financial statements. This is the first full-scale audit in the issuer's entire history, and it marks an attempt to elevate the stablecoin industry to a new level of transparency.
What exactly did the auditors review
The review covered all financial activities of Tether International, S.A. de C.V. for the reporting period ending December 31, 2025. KPMG auditors conducted an in-depth analysis of transactions, ownership documents, internal control systems, and counterparty data. Notably, the specialists did not limit themselves to formal reports—they personally recounted and inspected the gold bars held on the company's balance sheet.
The results are impressive: as of the reporting date, Tether's reserves exceeded its liabilities by $6.814 billion. This is a significant "safety cushion" that, at first glance, puts an end to years of disputes over the adequacy of USDT backing. It is worth recalling that previously the company only published quarterly attestations from the audit firm BDO, which did not constitute a full audit.
A warning sign: reserves are melting
However, if you dig deeper, the picture is not so clear-cut. According to BDO's latest quarterly report from July 31, excess reserves as of June 30, 2026, stood at $4.11 billion. That is roughly 40% less than the amount confirmed by KPMG's audit for December 2025. The capital buffer halved in just one quarter, despite a reported net operating profit of around $1.5 billion.
Such a discrepancy could indicate either unrealized losses or withdrawals from other parts of the reserve. One likely cause is the decline in gold prices—the spot price of the precious metal has dropped more than 20% from January peaks, and Tether holds a significant portion of its reserves in gold and bitcoins.
Verdict: a step forward, but questions remain
The "clean" opinion is undoubtedly an important step for legitimizing Tether and the entire stablecoin industry. However, it does not close all questions. The audited legal entity and the group subject to attestation do not align. Moreover, the company still does not publish the financial statements themselves, making it impossible for external analysts to independently verify the figures.
The audit does not assess the company's ability to fulfill redemption requests under stress conditions or counterparty risks. These issues will become even more acute as the GENIUS Act—the future US regulatory framework for stablecoins—approaches enactment. So the real test for Tether will not be the audit itself, but the publication of full reporting and transparency under the new regulation.
My conclusion: this audit is a strong signal to the market, but it is not a panacea. Investors should view it as a step toward maturity, not as a guarantee of the absence of risks. Transparency is a process, and Tether still has much to prove.