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Tether has engaged KPMG to perform its first full audit of USDT reserves, in response to a regulatory crackdown on stablecoin operations. The audit will include assets, liabilities, and internal controls, with PwC helping ensure system readiness. This follows past settlements with the CFTC and New York officials. The CFT compliance angle adds weight to Tether’s U.S. growth strategy.

• Tether hires KPMG for first full audit, expanding beyond attestations to review reserves and controls.
• Audit aligns with U.S. expansion plans and $185B USDT circulation amid growing regulatory oversight.
• Move follows past scrutiny, aiming to strengthen transparency and confidence in reserve backing.

Tether has hired KPMG to conduct its first full audit of USDT reserves, according to the Financial Times. The move, reported Thursday, also involves PwC preparing internal systems. This marks a major step as Tether faces scrutiny while expanding in the United States.

Audit Expands Beyond Current Reports

The planned audit will go further than existing attestations. Currently, BDO Italia provides periodic reserve reports. However, a full audit will examine assets, liabilities, and internal controls in detail.

According to the Financial Times, this process shows a shift toward deeper financial disclosure. Tether CFO Simon McWilliams previously said the firm already operates at “Big Four audit standard.” He added that a full audit will be delivered.

Notably, USDT has about $185 billion in circulation. This makes it a central liquidity source across crypto markets.

Expansion Plans Drive Transparency Push

Tether’s audit effort comes as the company prepares for a U.S. expansion. It is also exploring a potential fundraising round between $15 billion and $20 billion. However, investor concerns around valuation and regulation have slowed discussions.

At the same time, USDT plays a significant role in traditional finance links. Tether holds large exposures to U.S. Treasury securities and related instruments. This ties crypto liquidity directly to government debt markets.

The regulatory backdrop is also shifting. The GENIUS Act established a federal framework for stablecoins in the United States. Tether has already launched a compliant dollar-pegged token under this structure.

Past Scrutiny Shapes Current Effort

Tether’s push for a full audit follows years of questions about its reserves. Historical disclosures showed heavy reliance on commercial paper and bank deposits.

Previously, the company settled with the Commodity Futures Trading Commission over misleading reserve statements. It also reached an agreement with the New York Attorney General on disclosure practices.

These developments required Tether to publish detailed reserve reports for a defined period. As a result, the current audit effort represents a broader review of its financial position.

KPMG’s audit is expected to cover the full balance sheet. Meanwhile, PwC will support system readiness before the process begins.