Stablecoin issuer Tether is reportedly working to secure an audit from one of the Big Four accounting firms to verify that its USDT token remains backed on a 1:1 basis with reserves.
Tether’s CEO, Paolo Ardoino, suggested that the audit process could become more seamless under the administration of pro-crypto U.S. President Donald Trump. The move follows growing concerns within the industry about Tether’s financial transparency and the potential risk of an FTX-like collapse due to a lack of independent third-party audits.
Tether Moves Toward First Comprehensive Audit
“If the U.S. President declares this a priority, major auditing firms will have to take notice, and we are pleased with that,” Ardoino stated in an interview with Reuters on March 21.
He emphasized that securing an audit is a top priority for Tether. While the company currently undergoes quarterly attestations, it has not yet conducted a full-scale annual audit, which would offer deeper insights into its financial standing for both regulators and investors.
Ardoino did not disclose which of the Big Four firms—PricewaterhouseCoopers (PwC), Ernst & Young (EY), Deloitte, or KPMG—Tether intends to collaborate with.
Tether’s USDT maintains its peg to the U.S. dollar by holding reserves equivalent to its circulating supply. These reserves consist of fiat currency, cash equivalents, and other assets. Earlier in March, Tether appointed Simon McWilliams as its chief financial officer, signaling its preparation for a full audit.
Ongoing Industry Scrutiny Over Tether’s Reserves
Concerns about Tether’s transparency have persisted for years. In September 2024, Cyber Capital founder Justin Bons highlighted potential risks, arguing that the market is forced to trust Tether’s claim of holding $118 billion in collateral without concrete proof.
“Tether remains one of the greatest existential threats to crypto, as we are expected to believe in its reserves despite a lack of full transparency,” Bons warned.
Consumer advocacy group Consumers’ Research also published a report criticizing Tether for its opacity. The skepticism stems in part from a 2021 case in which the U.S. Commodity Futures Trading Commission (CFTC) imposed a $41 million fine on Tether for misrepresenting its reserve backing.
More recently, Tether has expressed frustration over new European regulations under the Markets in Crypto-Assets (MiCA) framework. These rules have led exchanges like Crypto.com to delist USDT along with several other tokens.
“It is disappointing to see abrupt regulatory actions based on unclear statements that fail to provide proper justification for such measures,” a Tether spokesperson stated.
As Tether seeks to enhance its credibility, securing a Big Four audit could mark a significant step toward greater transparency and confidence in its financial stability.
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