Tether, the company behind the world’s most widely used digital dollar called USDT, has hired one of the most respected accounting firms in the world — KPMG — to conduct a full audit of its reserves. This is not a routine checkup. Tether itself called it “the biggest ever inaugural audit in the history of financial markets.” That is a bold claim, but the numbers back it up: USDT currently holds $185 billion in reserves, making it the largest stablecoin on earth.
Think of a stablecoin like a digital dollar bill. For every USDT token in circulation, Tether is supposed to hold one real dollar — or an equally safe asset — in reserve. The audit is meant to prove that promise is actually being kept. KPMG will examine Tether’s assets, liabilities, internal controls, and reporting systems, going far deeper than the quarterly attestations the company has previously released.
Tether is also working with another major accounting firm, PwC, to help prepare its internal systems before the audit officially begins. To further signal its seriousness, Tether appointed Simon McWilliams as its new Chief Financial Officer earlier this month, specifically to strengthen transparency and regulatory engagement. McWilliams confirmed the audit “will be delivered,” adding that Tether already operates at Big Four standards.
A History of Scrutiny — and a $41M Fine
This audit carries particular weight because Tether’s past has not been without controversy. In 2021, the company was fined $41 million by U.S. regulators for making misleading claims about whether USDT was fully backed by fiat currency. Since then, critics and regulators have repeatedly pushed for a proper, independent audit rather than self-reported attestations.
Here is a quick look at what this audit covers:
- Assets and liabilities — every dollar coming in and going out
- Reserve composition — what exactly backs each USDT token
- Internal controls — how the company manages its financial systems
- Reporting accuracy — whether past statements were truthful and complete
By bringing in KPMG through a competitive selection process, Tether is clearly trying to rebuild trust, especially as it pursues expansion into the United States market and explores potential fundraising opportunities.
The CLARITY Act and Tether’s US Ambitions
Tether’s timing is no coincidence. The audit announcement lands just as the U.S. Congress makes meaningful progress on the CLARITY Act, a major piece of legislation that would create formal rules for how stablecoins operate in America.
Senate Banking Committee Chairman Tim Scott confirmed that Republicans, Democrats, and the White House are all actively negotiating bill language together — a rare show of bipartisan cooperation in Washington.
Prediction market Polymarket now puts the odds of the CLARITY Act being signed into law in 2026 at 60%, up sharply following recent developments. However, not everyone is pleased with the current draft. Coinbase and other crypto industry leaders have called a new provision on stablecoin yield “restrictive.” Closed-door negotiations continue, with the Senate Banking Committee eyeing a possible markup session in mid-April.
Tether has already taken steps to position itself for the U.S. regulatory environment. It launched a separate U.S.-focused stablecoin called USAT, pegged to the dollar, issued through Anchorage Digital Bank and overseen by Bo Hines — formerly a crypto advisor to President Donald Trump. The KPMG audit, combined with these regulatory moves, signals that Tether is not just watching U.S. crypto policy unfold — it is actively preparing to be part of it.