Tether Taps KPMG and PwC for Audit Ahead of U.S. Push

• KPMG has reportedly been selected by Tether to conduct a comprehensive audit of its $185 billion USDT stablecoin reserves.
• PwC is assisting the company in preparing its internal reporting systems to meet the rigorous standards required for a full financial audit.
• The push for transparency coincides with Tether's plans for a U.S. expansion and a potential fundraising round targeting a $500 billion valuation.

Transitioning to Big Four Standards

Tether is moving beyond its current monthly attestations provided by BDO Italia to undergo a full financial statement audit. While attestations offer a snapshot of reserves, a formal audit involves a deeper investigation into internal controls, liabilities, and reporting systems. CFO Simon McWilliams stated that the company is already operating at a "Big Four audit standard" and emphasized that the finalized audit will be delivered as part of a formal engagement. To ensure readiness, Tether has brought in PwC to refine its internal infrastructure before KPMG begins the official review.

Strategic Growth and U.S. Ambitions

This shift toward institutional-grade transparency is a critical component of Tether's broader business strategy. The El Salvador-based company is reportedly exploring a fundraising round of $15 billion to $20 billion, seeking a valuation of approximately $500 billion. However, potential investors have previously expressed concerns regarding regulatory risks and pricing. By securing a Big Four audit, Tether aims to mitigate these concerns as it prepares to expand its footprint in the United States. The company has already shown commitment to U.S. compliance by launching USAT, a dollar-pegged token that adheres to the federal framework established by the GENIUS Act passed last July.

Addressing Historical Reserve Concerns

For years, Tether has faced scrutiny over the composition of its reserves, which serve as a foundational element of the global crypto market's liquidity. Historically, the company resisted detailed disclosures, leading to a protracted legal battle with the New York Attorney General. Documents released in 2023 following that dispute revealed that as of March 2021, Tether held a significant portion of its $40.6 billion in reserves at Deltec Bank in the Bahamas. Those records also showed heavy exposure to commercial paper from international entities, including the Agricultural Bank of China and ICBC. The upcoming audit by KPMG is expected to provide the most definitive account of Tether's current holdings, which now include massive positions in U.S. Treasury bills.