Cryptocurrency firm Tether hires KPMG for a comprehensive audit of its USDT stablecoin, marking a significant step amid plans for a major equity raise.
Tether, the issuer of the largest stablecoin USDT, has hired KPMG to perform its first full independent audit of USDT's financial statements, according to a Financial Times report citing people familiar with the matter.
This development follows Tether's recent announcement of engaging a Big Four accounting firm, after years of relying on periodic reserve attestations from BDO Italia since 2022.
Audit Details and Preparations
The audit by KPMG will cover Tether's assets, liabilities, and internal controls, going beyond previous snapshots of reserves. Tether has also brought in PwC to help prepare its internal systems for this process.
USDT, with approximately $185 billion in circulation, is backed by over $122 billion in direct US Treasury securities and about $141 billion in total Treasury exposure, including related instruments.
Tether is considering a multibillion-dollar equity raise and potential expansion into the US market under the new federal stablecoin framework established by the GENIUS Act.
Previously, Tether faced regulatory scrutiny, including a $41 million fine from the CFTC for misleading statements about its reserves and an $18.5 million settlement with the New York Attorney General over allegations of concealing losses and misleading investors.
Cointelegraph reported that Tether's CEO refuted claims of a specific $20 billion raise figure from a Bloomberg report, while maintaining a $500 billion valuation target based on company profits.
