Tether Wraps Up First Big Four Audit as KPMG Issues Clean Opinion

Tether said KPMG has completed a full audit of the stablecoin issuer, its first by a Big Four accounting firm. The company said the auditor delivered a "clean" opinion on its 2025 financial statements, describing it as the most favorable conclusion an independent auditor can provide. CEO Paolo Ardoino pointed to the completed audit as a rebuttal to long-running claims that Tether would not undergo the highest level of external scrutiny. Reserves remain a focal point Tether's reserve makeup has been under debate for years, with critics questioning both the quality and transparency of the assets backing USDT. In late 2025, S&P Global downgraded its assessment of USDT from "constrained" to "weak," citing reserve composition and disclosure concerns. The rating agency said 77% of reserves were held in U.S. Treasury bonds and cash equivalents, with the remainder increasingly tied to BTC and gold, which it viewed as higher risk. Tether has described USDT as its offshore product, noting it does not operate under rigid reserve-composition guidelines. For the period ending in June, the company reported roughly 75% exposure to T-bills and cash equivalents, with gold and metals at 10% and BTC exposure at 3%. By contrast, Tether's U.S.-focused product, USAT, is intended to be backed 1:1, with nearly 100% of reserves in T-bills or cash equivalents. Market reaction and lingering doubts ETF analyst Nate Geraci said Tether's scale limits competitive pressure, arguing that without a solution to sharing stablecoin yield, meaningful competition remains unlikely. Some skeptics remain unconvinced. Swan CEO Cory Klippsten said Tether's ownership structure is still unclear and characterized the audit as covering only one subsidiary, Tether International. Tether continues to post outsized earnings. The company said it generated $1.5B in net profit in the most recent quarter, while USDT holders have surpassed 650 million and continue to grow. Key takeaways - Tether said KPMG completed its first full audit, issuing a clean opinion on its 2025 financial statements. - Critics continue to question transparency and ownership, and argue the audit scope was limited to the Tether International subsidiary.