TheBlock
Tether has cleared its first full financial audit with KPMG U.S., which issued an unqualified opinion on the 2025 statements of Tether International, S.A. de C.V., the issuer of USDT. The audited statements showed the company's reserves exceeded its liabilities by $6.8 billion as of Dec. 31, 2025. CEO Paolo Ardoino, in an interview with The Block's The Starting Block podcast, brushed off continued criticism, saying the firm had "proved ourselves many times."
Why it matters
The unqualified opinion is the most credible third-party validation Tether has produced, after years of operating on quarterly attestations from smaller firms. Critics have raised two structural concerns: that the audit covers one operating subsidiary rather than a fully consolidated group view, and that the audited statements themselves have not been made public. Ardoino pushed back on both, confirming that Tether International is "the only entity issuing USDT," and a source familiar with the matter said the clean opinion is the highest available outcome, without reservations or caveats.
Ardoino attributed the multi-year wait for a full audit not to balance-sheet complexity but to the prior US administration's posture toward crypto, which he said made Big Four firms reluctant to engage. He singled out Senator Elizabeth Warren's public criticism of Tether as a contributing factor and said the current administration's more supportive stance let Tether resume talks with several firms before settling on KPMG U.S.
Market impact
Tether committed to an annual full audit going forward, on top of its quarterly reserve attestations, a structural upgrade to its reporting cadence. Ardoino pointed to 2022, when Tether redeemed $7 billion in 48 hours, roughly 10% of reserves at the time, without halting withdrawals, as proof the firm can scale under stress. He also disclosed that Tether is profitable, is not actively fundraising, and is exploring funding for AI-driven security audits of Bitcoin-related open-source software after the recent ColdCard incident.
Frequently asked questions
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What did the KPMG audit of Tether actually cover?
KPMG U.S. issued an unqualified opinion on the 2025 financial statements of Tether International, S.A. de C.V., the issuer of USDT. Critics note it covers one operating subsidiary rather than a fully consolidated group view.
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How large was Tether's reserve buffer at year-end 2025?
Tether's audited reserves exceeded its liabilities by $6.8 billion as of Dec. 31, 2025, according to the statements reviewed by KPMG U.S.
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Why did Tether's full audit take years to complete?
CEO Paolo Ardoino blamed the prior US administration's posture toward crypto and Senator Elizabeth Warren's public criticism of Tether for making Big Four firms reluctant to engage, not balance-sheet complexity.
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Did Tether release the audited financials publicly?
No. A source familiar with the matter told The Block that Tether provides the statements to regulators and banks on request but does not publish them, similar to other privately held firms.
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Will Tether repeat this audit going forward?
Yes. Ardoino said Tether will undergo a full financial audit every year, on top of its existing quarterly reserve attestations.
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