KPMG Completes Historic First Full Audit of Tether, Confirms $6.8B Surplus

Key Takeaways

Table of Contents

KPMG U.S. conducted Tether International’s first comprehensive financial audit for the year ending December 31, 2025
Audited results show Tether’s reserves surpass liabilities by $6.814 billion
Auditors conducted physical verification and counting of Tether’s gold bar inventory
This marks Tether’s transition from quarterly attestations to a complete annual audit
USDT maintains a $183 billion market capitalization, representing approximately 61% of the stablecoin sector

In a landmark development for the cryptocurrency industry, Tether has successfully completed its inaugural comprehensive financial audit. The examination, conducted by KPMG U.S., resulted in an unqualified opinion on the company’s 2025 financial statements.

An incredible day ❤️
Tether has its financial audit by a big-four: KPMG US. https://t.co/sW3bmCQ6Tu

— Paolo Ardoino 🤖 (@paoloardoino) August 13, 2026

The comprehensive review encompassed Tether’s complete balance sheet, income statement, and cash flow statements for the twelve-month period concluding on December 31, 2025. KPMG determined that the financial statements accurately represent the company’s fiscal position in accordance with United States generally accepted accounting principles.

According to the audited financial statements, Tether’s total reserves surpassed its outstanding liabilities by $6.814 billion as of the year’s conclusion.

Moving Beyond Limited Attestations

Historically, Tether relied on quarterly attestation reports instead of comprehensive audits. Attestations verify specific information such as reserve balances at a particular moment. In contrast, a complete audit involves thorough examination of transactions, internal systems, third-party relationships, asset valuations, and ownership documentation.

As part of the audit process, KPMG performed physical verification by inspecting and counting Tether’s gold bar holdings. The auditors conducted independent verification rather than depending solely on custodial documentation.

This development addresses longstanding criticism from industry observers. Despite being among the largest financial entities in the cryptocurrency space, Tether had previously not submitted to the type of rigorous independent examination standard for organizations of comparable scale.

In a statement, CEO Paolo Ardoino responded to critics directly: “For years, some detractors said an audit of Tether could not be completed.”

Expansion and Market Dominance

Since its 2014 introduction, USDT has emerged as the leading stablecoin in the market. With a $183 billion market capitalization, it commands approximately 61% of the $301 billion total stablecoin market. Circle’s USDC, its primary competitor, maintains a market cap of roughly $72 billion.

Tether disclosed net profits exceeding $10 billion for 2025. During the second quarter of the current year, the company generated $1.5 billion in net operating profit, primarily from earnings on U.S. Treasury securities and repurchase agreement holdings.

Beyond stablecoins, the company has diversified its investment portfolio. Recent investments include $20 million stakes in both Argentine digital bank Ualá and Brazilian cryptocurrency exchange Mercado Bitcoin. Additionally, Tether spearheaded a $50 million investment round for Eight Sleep, an artificial intelligence sleep technology company.

The company’s Tether Gold product has experienced substantial growth. Physical gold reserves supporting the tokenized asset increased by 9.5% during the second quarter. The product currently stands as the largest tokenized commodity offering, valued at approximately $2.7 billion.

As part of its reserve management approach, Tether has emerged as a significant purchaser of U.S. government securities. This position has expanded in tandem with USDT’s increasing market capitalization.

Notwithstanding the company’s substantial size and profitability, Ardoino has indicated no intention to pursue a public listing. In June 2025, he stated on X: “No need to go public.”

KPMG acknowledged issuing an unqualified opinion regarding Tether’s 2025 financial statements but provided no additional commentary, referencing client confidentiality obligations.

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