Historical audit of Tether: KPMG confirmed USDT reserves, but questions remain
The issuer of the world's largest stablecoin, Tether, has announced the completion of the first full-scale financial audit in its history. The review was conducted by the reputable international network KPMG (US), and its result was a "clean" opinion, meaning the highest form of confirmation of the reliability of financial statements. This event undoubtedly marks a new era of transparency for a company that has faced years of criticism over insufficient disclosure.
What the review showed
The audit covered the financial statements of Tether International, S.A. de C.V. for 2025. KPMG specialists verified not only the figures on the balance sheet but also the underlying assets directly. In particular, a physical recount of gold bars held in the company's accounts was conducted, representing an unprecedented level of scrutiny for a stablecoin issuer. As of December 31, 2025, Tether's reserves exceeded its liabilities by $6.814 billion, providing a solid "safety cushion" for USDT holders.
An alarming signal: reserves are melting
However, as my analysis shows, behind the facade of positive news lies an important nuance. According to the latest quarterly report, excess reserves as of June 30, 2026, amounted to only $4.11 billion. That is roughly 40% less than the amount confirmed by KPMG auditors. Such a significant decline over less than two years raises questions.
A key reason could be the fall in gold prices, as gold is one of Tether's primary reserve assets. The spot price of the precious metal has dropped more than 20% from January peaks. Given that the company holds a significant portion of its reserves in gold and bitcoin, the volatility of these assets directly impacts its capital cushion. This could also indicate unrealized losses or a reallocation of funds to other parts of the business.
Unanswered questions
Despite the "clean" opinion, it is important to understand its limitations. The audit does not assess the company's ability to survive a stressful "bank run" scenario or its liquidity during a sharp market downturn. Additionally, Tether still does not publish full financial statements with notes, which deprives external analysts of the ability to conduct their own assessment of risks and reserve structure.
With the impending enactment of the GENIUS Act in the United States, which will establish strict federal standards for stablecoin issuers, this audit becomes an important but only first step. The real test for Tether will be the publication of complete financial documentation signed by KPMG, rather than just the final opinion. Until then, the market will closely monitor reserve dynamics, which, judging by the latest data, require close attention.
My expert opinion: A "clean" audit is a powerful signal of confidence, but it should not lull investors into complacency. The discrepancy in reserve figures between the KPMG report and the latest quarterly data is a warning sign. The market needs not just a one-time review but systematic and full transparency, especially ahead of new regulation.