KPMG Delivers Clean Audit Opinion on Tether’s 2025 Finances

KPMG Delivers Clean Audit Opinion on Tether’s 2025 Finances

Tether announced Thursday that KPMG, one of the Big Four accounting firms, issued an unqualified audit opinion on Tether International’s 2025 financial statements. An unqualified opinion represents the highest standard an auditor can provide, indicating no significant problems with how the financial statements were presented. The company characterized the completion of this review as the “largest inaugural financial audit in history,” given the comprehensive scope of KPMG’s examination.

During the audit process, KPMG reviewed Tether’s assets, liabilities, income, cash flows, internal systems, records, counterparties, and supporting documentation. The firm conducted physical inspections of every gold bar held by Tether, verifying each bar’s existence and identifying information rather than relying solely on custodian or counterparty reports. PwC supported this effort by assisting in the preparation of Tether’s internal systems for review.

It is important to note that while an unqualified audit opinion is favorable, it does not amount to an endorsement of Tether’s business practices or a guarantee that the company will be able to meet its financial obligations.

Landmark Development After Years of Regulatory Scrutiny

This audit milestone represents a significant moment for Tether after years of regulatory challenges and public questioning regarding USDT’s backing. In February 2021, the company settled a lawsuit filed by the state of New York, paying an $18.5 million fine over alleged financial irregularities. Later that same year, in October, the Commodity Futures Trading Commission fined Tether $41 million over claims that USDT was not fully backed by U.S. dollars.

Tether CEO Paolo Ardoino responded to the successful audit by noting that despite “detractors’ false claims, competitors’ lies, political attacks and misinformed coverage by several mainstream newspapers trying desperately to discredit us, Tether delivered what it promised.” The company had announced in March that it had hired a Big Four accounting firm to conduct this audit, though it initially withheld the firm’s name before KPMG was subsequently identified.

Advancing Transparency and Operational Sophistication

Tether positioned the completed audit as evidence of its evolution into a more mature and sophisticated organization. Ardoino emphasized that “our company has evolved into one of the most financially significant and operationally sophisticated private companies in the world,” and stated that “this audit demonstrates that our financial infrastructure and governance have evolved alongside that responsibility.”

The successful completion of a major financial audit by a leading accounting firm signals to the market that Tether’s governance structures and financial controls have progressed in tandem with the company’s expansion and the growing role of USDT in the crypto ecosystem.

Tether’s successful audit could reinforce confidence in USDT, a stablecoin that serves as the primary trading pair for many cryptocurrencies including XRP across major exchanges.

Source: KPMG, via Decrypt. Not financial advice.