On Thursday, the stablecoin issuer announced that the audit covered the company Tether International, S.A. de C.V. for the year ending December 31, 2025. Tether called this the largest first financial audit in history, but this claim could not be independently verified based on the company's statement.
An unqualified report means KPMG concluded that Tether's financial statements present fairly, in all material respects, its financial position, results of operations, and cash flows in accordance with U.S. accounting rules.
In simpler terms, the auditor did not find significant issues requiring a qualification or limitation in its opinion. This does not mean the audit guarantees the company will never face financial or business risks.
Reserve Surplus of $6.814 Billion
Tether reported that as of the end of 2025, its reserves exceeded liabilities associated with issued tokens by $6.814 billion. A stablecoin is a digital token designed to maintain a fixed value, often backed by reserves tied to tokens in circulation.
For USDT users, these reserves are important as they underpin the promise that tokens can be redeemed at the stated value. Companies and traders also use stablecoins to move dollar-pegged value across cryptocurrency markets and borders.
Audit Goes Beyond Reserve Attestations
The company had previously published quarterly reserve attestations. These reports provide an independent assessment of specific information at a point in time, while a full financial statement audit covers a broader set of records, transactions, controls, and financial statements.
Tether stated that KPMG examined its balance sheet, income statement, cash flow statement, ownership documents, valuations, and counterparties. The company also noted that KPMG physically counted and inspected every gold bar in Tether's possession, rather than relying solely on custodian reports.
Scrutiny of Stablecoins Intensifies
This milestone comes as stablecoins gain increasing importance in payments, remittances, savings, and digital asset trading. Their broader use has increased pressure on issuers to explain what backs their tokens and how those assets are managed.
Paolo Ardoino, CEO of Tether, stated that the audit addressed long-standing criticism about whether the company would agree to undergo a full independent review.
"For years, some critics claimed that auditing Tether couldn't be done to completion. They said the company refused to undergo the most stringent scrutiny. Once again, we've proven them wrong. Completing the audit of our financial statements sets a new standard for the industry and reflects the leadership we have shown in this market from the beginning," Ardoino explained on Thursday.
Tether CFO Simon McWhirter said the audited financial statements confirm the reserve assurances the company had previously presented.
What Users and Regulators Will Watch For
The next test will be whether Tether continues to publish audited results and whether other stablecoin issuers adopt similar reporting. Regulators, investors, and users will also monitor how the disclosure of audit information affects transparency expectations in this rapidly growing market.
