Tether Receives KPMG Unqualified Audit Opinion but Withholds Statements

Audit Opinion and Reserve Position

KPMG issued an unqualified audit opinion on Tether's 2025 financial statements, marking the stablecoin issuer's first full audit from a Big Four firm. According to CryptoPotato, the audited figures show reserves exceeding liabilities by $6.81 billion. An unqualified opinion indicates the auditor found no material misstatements and that financial statements present a fair view of the entity's position.

Missing Disclosure and Auditing Standards

Despite the completed audit, Tether has not published the audited financial statements or released KPMG's opinion letter publicly. The audit was conducted on the accounts of Tether's El Salvador issuing entity and followed AICPA auditing standards rather than PCAOB standards. The GENIUS Act, proposed U.S. legislation, would require licensed U.S. stablecoin issuers to meet PCAOB standards, which are more stringent than AICPA requirements. The choice of El Salvador incorporation and AICPA standards suggests Tether may be structuring its audit scope to avoid U.S. regulatory oversight.

Why It Matters

For Traders

Unqualified audit by Big Four reduces counterparty risk on USDT holdings, but lack of public disclosure prevents market participants from independently verifying reserve claims.