Tether is moving toward its first full financial audit of USDT as it prepares for tighter regulations and expansion in the United States.
Key Takeaways
- Tether has hired KPMG for its first full audit of USDT, marking a major shift from past reserve attestations.
- The audit will review assets, liabilities, and internal controls, offering deeper transparency than previous disclosures.
- The move aligns with the GENIUS Act, which introduces strict rules for stablecoin issuers in the US.
- Tether is also exploring a major fundraising round, potentially valuing the company at up to $500 billion.
What Happened?
Tether has engaged KPMG to conduct its first comprehensive audit of USDT while also bringing in PwC to prepare its internal systems and reporting processes. The move comes as the company positions itself for expansion into the United States under a new regulatory framework.
Tether has selected KPMG to conduct a full audit of its approximately $185 billion USDT reserves and hired PwC to prepare its internal systems. The move comes as Tether plans a U.S. expansion and seeks to raise $15–20 billion amid investor concerns over pricing and regulatory… pic.twitter.com/4VG5zN0Bx5
— Wu Blockchain (@WuBlockchain) March 27, 2026
Tether Moves Toward Full Financial Transparency
The decision to hire KPMG marks a significant shift in how Tether approaches financial disclosure. Until now, the company relied on periodic reserve attestations conducted by BDO Italia. These reports only verified reserve balances at specific points in time rather than offering a full picture of the company’s financial health.
A full audit goes much further. It will include a detailed review of:
- Assets and liabilities across the balance sheet.
- Internal controls and financial reporting systems.
- Operational and accounting processes.
Tether has described the initiative as “the biggest ever inaugural audit in the history of financial markets”, signaling the scale and importance of the effort. The company also stated that it already operates at standards comparable to Big Four firms, though it has not provided a timeline for when the audit will be completed.
GENIUS Act Drives Regulatory Pressure
The audit push is closely tied to the Guiding and Establishing National Innovation for US Stablecoins Act, commonly known as the GENIUS Act. Signed into law in July 2025, the legislation creates a federal framework for stablecoin issuers operating in the United States.
Under the law, issuers must meet strict requirements, including:
- Maintaining 1:1 reserve backing with approved assets.
- Publishing monthly reserve reports reviewed by independent firms.
- Providing annual audited financial statements for large issuers.
- Complying with anti-money laundering regulations under the Bank Secrecy Act.
For large players like Tether, which has around $185 billion in USDT circulation, compliance is not optional. The company must meet federal oversight standards if it wants to operate in the US market.
US Expansion and New Stablecoin Launch
Tether has already taken steps toward entering the regulated US market. In January 2026, it launched USAT, a GENIUS Act compliant stablecoin issued through Anchorage Digital Bank under regulatory supervision.
This move places Tether in direct competition with other regulated stablecoin issuers and signals a broader strategy to align with US financial rules. A successful audit could help Tether build trust with institutional investors and traditional financial firms that have previously been cautious about engaging with USDT.
Financial Strength and Reserve Composition
Recent disclosures suggest Tether holds a substantial reserve base. The company reports:
- Roughly $193 billion in total assets against $186.5 billion in liabilities.
- Over $6 billion in excess reserves.
- Around 82 percent of reserves in short term US Treasury bills.
In addition, earlier data indicated significant exposure to US Treasury securities, including overnight agreements and similar instruments. This reserve structure is central to maintaining the stability and credibility of USDT.
Fundraising Plans and Market Ambitions
Tether is also exploring a potential equity raise of $15 billion to $20 billion, with discussions pointing to a possible $500 billion valuation. While company leadership has pushed back on specific figures, it has linked the valuation to Tether’s profitability and market dominance.
A clean audit from KPMG could play a key role in unlocking these plans by addressing long standing concerns about transparency.
Past Legal Issues Still Cast a Shadow
Despite the move toward greater transparency, Tether’s history continues to draw scrutiny. The company previously paid a $41 million fine to the Commodity Futures Trading Commission over misleading statements regarding reserves.
It also reached an $18.5 million settlement with the New York Attorney General related to allegations of hiding losses and misrepresenting USDT backing. These cases remain part of the broader context as regulators and investors evaluate the company’s credibility.
CoinLaw’s Takeaway
In my view, this is one of the most important turning points for Tether. For years, the biggest criticism was lack of transparency. Now, bringing in KPMG and PwC shows that the company understands the stakes, especially with the US market in focus.
I found that the real story here is not just the audit, but what it unlocks. If Tether successfully completes this audit, it could finally gain the trust of institutions that have stayed on the sidelines. At the same time, I think skepticism will not disappear overnight because past issues still matter to regulators and investors.