Tether Completes First Full Audit, Receives Unqualified Opinion from KPMG

Tether Completes First Full Audit

Tether has achieved a significant milestone by finalizing its first independent financial audit, conducted by KPMG U.S. The firm issued an unqualified opinion on Tether’s financial statements for the year ending December 31, 2025, indicating a strong financial position with a reserve surplus of $6.814 billion.

Details of the Audit

The audit assessed Tether International’s financial statements and not just a snapshot of reserves. KPMG reviewed comprehensive accounts including the balance sheet, income statement, changes in equity, and cash flow for the entire year of 2025.

KPMG’s rigorous inspection involved evaluating transactions, internal systems, and asset ownership records, along with the physical verification of Tether’s gold holdings. The audit confirmed that Tether’s financial statements “present fairly, in all material respects” under U.S. generally accepted accounting principles (GAAP).

Significance of the Unqualified Opinion

An unqualified opinion signifies that KPMG found no reservation or exception with Tether’s financial reporting, describing the audit result as a clean audit. According to Tether, this outcome aligns with previously disclosed reserve figures from earlier attestations. CFO Simon McWilliams noted that the audited reserves exceeded liabilities tied to issued tokens by $6.814 billion as of December 31, 2025.

Moving Beyond Quarterly Attestations

This audit represents a substantial advancement from Tether’s past practice of quarterly reserve attestations, which only provided a limited view of financial health at a specific date. The full audit reflects Tether’s ongoing efforts to establish a more robust internal finance structure.

The process commenced in March 2026, involving initial assessments of Tether’s systems and controls before KPMG was appointed as the auditor.

Changed Reserve Figures Following the Audit

It is crucial to note that the audited surplus of $6.814 billion is distinct from Tether’s reserve figures disclosed in subsequent quarterly reports for 2026. As of the first quarter of 2026, Tether reported $191.8 billion in assets, while its second-quarter attestation indicated assets of $187.75 billion against liabilities of $183.64 billion.

Regulatory Compliance and Future Outlook

As the cryptocurrency landscape evolves, Tether’s compliance with U.S. regulations regarding stablecoins remains a critical focus. The GENIUS Act, enacted in July 2025, established federal guidelines for stablecoin issuers, including reserve requirements and disclosures. Tether intends to adhere to these regulations, particularly as it operates from outside the U.S.

Tether has recently announced USAT, a new dollar-backed token intended for the American market, with oversight from Anchorage Digital Bank and Cantor Fitzgerald serving as its custodian.