Tether, the company behind the world's largest stablecoin USDT, has initiated collaboration with one of the "Big Four" accounting firms to conduct a comprehensive audit of its reserves, CEO Paolo Ardoino confirmed. The move aims to verify that each token is backed 1:1 with assets amid intensifying industry pressure for greater transparency.
In comments to Reuters on March 21, Ardoino emphasized that obtaining a full audit represents a top priority for the firm. He suggested the process might be facilitated by U.S. President Donald Trump's supportive stance toward cryptocurrency integration. "If the President of the United States says this is top priority for the US, Big Four auditing firms will have to listen," Ardoino stated.
While confirming ongoing discussions with one of the major accounting firms — PwC, EY, Deloitte, or KPMG — the CEO declined to specify which organization is involved in the potential audit. Tether currently relies on quarterly attestations rather than comprehensive independent annual audits, a practice critics argue provides insufficient assurance to regulators and investors.
The stablecoin issuer reported significant financial performance in its most recent attestation for Q4 2024, highlighting $13.7 billion in profit for 2024, including approximately $6 billion in the fourth quarter alone. The company reported $113 billion in direct and indirect holdings alongside $7 billion in excess reserves, representing a 36% year-over-year increase.
To strengthen its financial operations and audit readiness, Tether recently appointed Simon McWilliams as Chief Financial Officer.
Critics have consistently questioned Tether's claims regarding its reserves. In September 2024, Cyber Capital founder Justin Bons characterized Tether as a major threat to the cryptocurrency ecosystem, specifically citing concerns about the lack of independent verification of its reserve assets. These criticisms echoed findings from Consumers' Research, a watchdog organization that similarly questioned Tether's transparency practices.
The company's regulatory history includes a $41 million fine imposed by the Commodity Futures Trading Commission in 2021 for misrepresentations regarding its reserve backing. More recently, Tether has resisted certain European regulations under the Markets in Crypto-Assets (MiCA) framework, which prompted exchanges including Crypto.com to delist USDT and other tokens from their platforms.
Tether has simultaneously engaged with U.S. lawmakers to help shape federal regulations for the stablecoin sector.
The company has participated in discussions with Representatives Bryan Steil and French Hill, key figures behind the STABLE Act introduced on February 6. Ardoino reportedly confirmed the company's intention to contribute to two additional stablecoin bills proposed by other legislators.
The push for stablecoin regulation has gained momentum at the highest levels of U.S. financial oversight. Federal Reserve Chair Jerome Powell affirmed the central bank's support for developing a regulatory framework during a Senate hearing on February 11, emphasizing the importance of protecting consumers and savers in the stablecoin ecosystem.