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KPMG U.S. has completed an independent audit of the 2025 financial statements of TG Commodities, the issuer of gold-backed token Tether Gold (XAUT), handing the accounts an unqualified, or clean, opinion, Tether said Thursday. The firm physically inspected and counted every individual gold bar backing XAUT, checking the identifying information on each one.
As of Dec. 31, 2025, TG Commodities held 520,089.350 fine troy ounces of gold worth $2.246 billion against 520,089.300 XAUT in circulation, according to Tether. The gold belongs to token holders and is stored in Switzerland, with each XAUT representing an undivided ownership interest in gold on specified bars.
Why it matters
This is Tether's second KPMG audit of the year. The Big Four firm already audited the 2025 accounts of Tether International, the USDT issuer, with the audit announced in August and an unqualified opinion confirmed by KPMG. Before then, Tether's regular reserve reporting consisted of attestations covering holdings and liabilities on a given date, a far weaker assurance standard than a full audit.
"Our strategy was deliberate: start with the largest and most complex businesses, USDT and XAUT, and set the standard for the industry," Tether Chief Financial Officer Simon McWilliams said Thursday. The company is working toward audits of the rest of its businesses, and the audited figures matched its quarterly reserve reports, he said.
Market impact
A clean Big Four opinion on both USDT and XAUT removes one of the most persistent criticisms aimed at Tether, that its reserves were never subject to audit-grade scrutiny. For XAUT, the bar-by-bar physical verification of a $2.246 billion gold vault strengthens the token's claim as a liquid, on-chain gold ownership vehicle. The move also raises the transparency bar for the wider stablecoin sector, where rivals now face pressure to match audit-level reporting as institutional allocators and regulators tighten their requirements.
Frequently asked questions
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What did KPMG's audit of Tether Gold (XAUT) find?
KPMG U.S. issued an unqualified, or clean, opinion on the 2025 financial statements of TG Commodities, the XAUT issuer. The firm also physically inspected and counted every individual gold bar backing the token.
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How much gold backs XAUT as of December 31, 2025?
TG Commodities held 520,089.350 fine troy ounces of gold worth $2.246 billion against 520,089.300 XAUT in circulation. The gold belongs to token holders and is stored in Switzerland.
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Is this Tether's first Big Four audit?
No. KPMG had already audited the 2025 accounts of Tether International, the USDT issuer, with that audit announced in August and an unqualified opinion confirmed. XAUT is the second audited business.
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How does an audit differ from Tether's earlier reserve reports?
Before these KPMG audits, Tether's regular reserve reporting consisted of attestations covering holdings and liabilities on a given date. A full audit is a stronger assurance standard performed by a Big Four firm.
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What does Tether's CFO say about the audit strategy?
CFO Simon McWilliams said the strategy was deliberate: start with the largest and most complex businesses, USDT and XAUT, and set the standard for the industry. Tether is working toward audits of its remaining businesses.
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