Stablecoin issuer Tether has announced that KPMG U.S. has completed the first independent audit of its reserves, marking a milestone after years of the company facing scrutiny over the assets backing its flagship token, USDT.

The San Salvador-based company, which issues the world's largest stablecoin by market capitalization, described the engagement as "the largest inaugural financial audit in history." Tether had long stated it was eager to work with a Big Four accounting firm, having previously been criticized for a lack of transparency regarding its reserves. Until now, the company provided quarterly attestations of its reserves—a more limited form of assurance than a full financial statement audit—which did little to satisfy critics who noted that attestations do not carry the same evidentiary weight as a complete independent audit.

Tether announced the completion via X (formerly Twitter):

Tether Completes the Largest Inaugural Financial Audit in History Read more: — Tether (@tether) August 13, 2026

"For years, some detractors said an audit of Tether could not be completed," Tether CEO Paolo Ardoino said in a statement. "They said the Company refused to subject itself to the most rigorous scrutiny. We have once again proven them wrong. Completing our financial statement audit sets a new standard for the industry and reflects the leadership we've brought to this market from the start."

According to Tether, KPMG "physically counted and inspected every individual gold bar held by Tether, verifying the existence and identifying information of each bar rather than relying solely on reports from custodians or counterparties." The company further stated that all assets and financial statements were subject to "independent substantive testing and verification."

Tether's statement did not specifically mention its Bitcoin holdings, and the company did not immediately respond to questions from Bitcoin Magazine. However, data from Arkham Intelligence indicates that Tether holds nearly $60 billion in Bitcoin within its reserves. The company has also increased its gold purchases in recent years and holds more U.S. Treasury securities than some sovereign nations.

"Tether has evolved from a disruptive stablecoin issuer into one of the most financially significant and operationally sophisticated private companies in the world," Ardoino continued. "This audit demonstrates that our financial infrastructure and governance have evolved alongside that responsibility."

USDT, the stablecoin issued by Tether, has a market capitalization exceeding $183 billion, making it the third-largest cryptocurrency by that measure. Stablecoins are digital tokens designed to maintain a stable value by being pegged to a reference asset, typically the U.S. dollar, and are widely used in cryptocurrency trading, lending, and remittances. The audit arrives amid intensifying global regulation of the stablecoin sector: the European Union's Markets in Crypto-Assets (MiCA) regulation imposes reserve transparency and operational requirements on stablecoin providers operating in the bloc, and U.S. lawmakers have advanced multiple proposals for federal stablecoin oversight.

The audit by KPMG represents a significant step for Tether, which has operated since 2014 and has faced recurring questions about the composition and adequacy of its reserve assets. In 2021, Tether settled with the New York Attorney General's office and paid a penalty to the Commodity Futures Trading Commission over allegations that it misrepresented the backing of USDT. The completion of a Big Four audit addresses one of the longest-standing demands from critics and regulators within the digital asset industry, though whether it will fully satisfy ongoing regulatory and market scrutiny remains to be seen.

Originally published by Bitcoin Magazine, written by Mathew Di Salvo.