TEDA says KPMG has completed its first major audit of its 2025 financial report

stablecoin issuers move from regular certification to comprehensive audits of the world's top accounting firms

According to Forkast, Tether has completed its first audit performed by one of the "Big Four" accounting firms. KPMG has signed an audit opinion on the stablecoin issuer's 2025 financial report.

For most of its history, Tether issued quarterly certification reports rather than comprehensive audits. These certification reports, prepared by smaller firms, only provide a snapshot of reserves at a certain point in time, far short of the in-depth verification typically required for a comprehensive audit.

Critics and regulators have long called for Tether to increase transparency. The company issues USDT, the largest stablecoin by market value, and its reserves support this token, which is widely used for transactions, payments and decentralized finance. Given the USDT's role as a pillar of liquidity in the cryptocurrency market, any doubts about its reserves will have a huge impact.

The introduction of the "Big Four" firms means that Tether accepts a different level of review than in the past. The big four accounting firms-including KPMG, Deloitte, Ernst & Young and PricewaterhouseCoopers-adopt auditing standards that go beyond point-in-point certification. They often require more in-depth testing of internal controls, documentation and related processes.

For years, Tether has faced questions about the composition of its reserves and whether it fully supports the USDT in circulation. Years after a U.S. regulatory settlement required it to strengthen reporting, the company has since issued certification reports more frequently and promoted the quality of its reserve assets.

An audit completed by a world-renowned accounting firm helped allay some of the concerns of institutional users, exchanges and regulators. But this by itself does not solve all the common issues that stakeholders have about stablecoin issuers, including how to hold reserves, where they are held, and how quickly they can be realized under pressure.

The timing also coincides with broader regulatory efforts aimed at formalizing stablecoin regulation. Lawmakers and regulators in multiple jurisdictions are developing frameworks to set reserve, disclosure and audit requirements for issuers such as Tether. Taking the initiative to move closer to the "Big Four" audit levels can be seen as a pre-emptive response to these requirements rather than waiting for enforcement.

Existing reports do not include specific details of the audit scope, such as which entities and reserve categories KPMG reviewed. It is unclear whether this audit will become a regular annual exercise or will only be a one-time arrangement for the 2025 financial report.

Market Impact

News of the completion of the "Big Four" audits may boost the confidence of traders and institutions that rely on USDT for settlement and liquidity. Greater certainty about reserve support is particularly critical during periods of market stress, when doubts about the solvency of stablecoins can trigger rapid redemptions.

This development may also affect the positioning of regulators and competing stablecoin issuers in terms of transparency. If Tether's move sets a new benchmark, other publishers may face pressure to conduct similar audits rather than relying solely on certification reports.

The reported audit is a significant improvement for a company that has defended its reserve practices under public and regulatory scrutiny for years. As for whether this will become a regular standard and how regulators will respond, more details remain to be revealed.

FAQs

What did KPMG reportedly do for Tether?
According to Forkast, KPMG has completed an audit of Tether's 2025 financial report, the first time the company has been audited by a "big four" accounting firm.

What is the difference between the audit and Tether's previous certification reports?
Certification reports usually only confirm reserve figures at a certain point in time, while comprehensive audits involve an in-depth review of financial statements, internal controls and underlying processes.

Why is this important for the entire stablecoin market?
USDT is the largest stablecoin by market value, supporting liquidity in trading and decentralized finance, so a higher degree of protection of its reserves will affect confidence in the entire market.

Will Tether continue to use the Big Four audits?
Existing reports do not indicate whether the audit will be repeated every year or will only be a one-time arrangement for 2025 financial reporting.