Tether seeks Big Four firm for its first full financial audit — Report
Stablecoin issuer Tether is set to make significant strides in transparency by consulting with a leading Big Four accounting firm to conduct a comprehensive audit of its asset reserves. This move aims to confirm that Tether’s USDT (Tether USD) is maintained at a 1:1 backing ratio, a reassurance that has become increasingly crucial in light of industry trepidations regarding liquidity crises similar to those experienced by FTX.
Tether’s CEO, Paolo Ardoino, expressed optimism that the audit process will be facilitated by a pro-crypto administration under former President Donald Trump. Referring to the current regulatory landscape, Ardoino remarked that increased attention from the highest levels of government could influence Big Four firms to prioritize the audit, thus instilling greater confidence among investors. He stated, “If the President of the United States says this is a top priority for the US, Big Four auditing firms will have to listen.”
While Tether currently provides quarterly reports, it has not undergone a full independent annual audit, which would offer more extensive assurances. Ardoino did not disclose which specific Big Four firm—PricewaterhouseCoopers (PwC), Ernst & Young (EY), Deloitte, or KPMG—would be engaged for this process. The expectation is that Tether’s first full audit will serve as a crucial step toward building trust with investors and regulators alike.
In financial performance, Tether reported a staggering profit of $13.7 billion in 2024. This highlights the robustness of USDT, which is designed to maintain a stable value by being pegged to the US dollar at a ratio of 1:1. As such, each USDT token is purportedly backed by reserves that encompass traditional currencies, cash equivalents, and a variety of other assets.
Reacting to growing unease within the crypto community, industry figures like Cyber Capital’s Justin Bons have openly criticized Tether for its opacity. Bons described Tether as “one of the biggest existential threats to crypto,” emphasizing the unsettling nature of having to take Tether’s assertion of holding $118 billion in collateral at face value, particularly after the U.S. Commodities and Futures Trading Commission (CFTC) previously fined Tether for misrepresenting its reserves in 2021.
Moreover, the organization Consumers’ Research released a report that echoed these concerns about Tether’s transparency, further emphasizing the urgent need for an exhaustive financial audit. As Tether navigates these challenges, it faces strategic hurdles due to new European regulations compelling exchanges like Crypto.com to delist USDT and other tokens to comply with the Markets in Crypto-Assets (MiCA) framework. A spokesperson for Tether expressed disappointment over these developments, questioning the clarity and rationale behind the regulatory actions that prompted such moves.
In a proactive effort to prepare for the forthcoming audit, Tether recently appointed Simon McWilliams as chief financial officer. This strategic hiring underscores Tether’s intent to enhance its financial governance and accountability amidst rising scrutiny from regulators and consumers alike.
As Tether prepares for its first full audit, the attention focused on its operational transparency and financial integrity will undoubtedly shape the future of not only its business but the broader landscape of cryptocurrency—a sector rapidly grappling with trust issues and the imperative for accountability.
