Tether, the issuer behind the world’s largest stablecoin USDT, is reportedly preparing for its first-ever full financial audit and is looking to enlist a Big Four accounting firm to perform the task. CEO Paolo Ardoino said the audit is now a “top priority” and emphasized its importance in restoring trust amid ongoing industry concerns over transparency.
Unlike Tether’s current quarterly attestations, which offer limited insights into its reserves, a full audit would be an independent and extensive financial review—something critics have demanded for years. While Ardoino did not disclose which firm he’s approaching, the potential candidates are PwC, EY, Deloitte, or KPMG.
Audit Under a Pro-Crypto Administration?
In an interview with Reuters, Ardoino suggested that a pro-crypto administration under Donald Trump would make the audit process smoother, implying that regulatory alignment could encourage major firms to take on the task. “If the President of the United States says this is a top priority for the U.S., Big Four auditing firms will have to listen,” he said.
Tether has recently strengthened its executive team by hiring Simon McWilliams as CFO, a move likely tied to its audit preparation. The company also reported a $13.7 billion profit in 2024, which underscores the scale and impact of its operations.
Lingering Trust Issues and Regulatory Backlash
Despite its market dominance, Tether has long faced scrutiny over its reserve backing. Critics like Cyber Capital founder Justin Bons argue that Tether remains an existential risk to the crypto ecosystem due to its lack of transparency. “[Tether is] one of the biggest existential threats to crypto. As we have to trust they hold $118B in collateral without proof,” Bons said in 2024.
This comes just a few years after the CFTC fined Tether $41 million in 2021 for falsely claiming USDT was fully backed at all times. More recently, the company voiced frustration over new MiCA regulations in Europe, which led to platforms like Crypto.com delisting USDT to comply with evolving regulatory frameworks.
The Stakes of a Full Audit
A full audit by a Big Four firm would be a watershed moment for Tether and could set a new benchmark for transparency in the stablecoin sector. As regulators and users demand higher standards, Tether’s next steps could significantly impact not just its own reputation, but the stability of the broader crypto market.
Whether this audit materializes and which firm takes the risk remains to be seen—but with mounting pressure, the window for delay is rapidly closing.