What to know:
- KPMG gave Tether a clean opinion after auditing its complete 2025 financial accounts.
- Tether ended 2025 with reserves exceeding token-related liabilities by $6.814 billion.
- The platform excess reserve buffer fell from $8.23 billion to $4.11 billion by June 2026.
Tether has completed the first independent audit of its annual financial statements. KPMG U.S. issued an unqualified opinion on the company’s 2025 accounts. Those statements showed reserves exceeded token-related liabilities by $6.814 billion on Dec. 31, 2025.
The audit included Tether International, S.A. de C.V., which is the entity that provides USDT. The audit performed by KPMG included the examination of the financial status of the firm at year-end, as well as the operations and cash flow of the entire year.
What KPMG Examined in Tether’s First Full Audit
The audit included the balance sheet, the income statement, and the changes in the equity and cash flow statement. According to KPMG, the accounts have been prepared fairly in accordance with GAAP in the USA.
The unqualified opinion means there were no material facts in the financial records that would require any qualification. An unqualified opinion does not provide a warranty of the future activity of Tether. The conclusion is based on the documents provided to KPMG only.
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KPMG made a separate statement about the unqualified opinion for The Block. KPMG declined additional comments due to the need of client confidentiality. The audit statements are not publicly available at the moment.
KPMG has audited the transactions, the internal processes, the ownership of assets, their valuation, counterparties, and documentation. The auditor has considered the evidence in support of each balance sheet item.
Auditors have checked all bars of gold owned by Tether and unique identification number for each of them. The auditor did not rely on the documentation provided by custodians or counterparties only.
It was also more comprehensive than the attestation done quarterly by Tether on its reserves. The attestation normally involves evaluating management’s reserve numbers on a single reporting date. KPMG’s audit covered full accounts and documentation for the entire year.
The process began in March when Tether hired a Big Four accounting firm. The company later revealed that KPMG was conducting the audit. First, KPMG considered Tether’s internal processes and procedures.
How Tether’s Reserve Surplus Changed in 2026
This surplus of $6.814 billion is due to Tether’s status on December 31, 2025. This surplus is not an indicator of the company’s current funds. Quarterly numbers have been changing in the first six months of 2026.
In accordance with BDO’s attestation as of June 30, the total value of assets was $187.75 billion, while liabilities were $183.64 billion. Excess reserves made up $4.11 billion. Three months ago, excess reserves were equal to $8.23 billion.
In the second quarter of 2026, Tether announced around $1.5 billion in net operating profit. The supply of USDT made up around $184.6 billion. The company accounted for over 60% of the whole global stablecoin market.
U.S. Stablecoin Rules Remain Relevant
This comes against the backdrop of the U.S. implementation of the GENIUS Act. This legislation sets up federal standards for payment stablecoins, such as reserve, disclosure, supervision, and anti-money laundering requirements.
An unqualified audit opinion does not indicate compliance with the above-mentioned requirements, nor does it ensure the continuation of listing on U.S.-based exchanges. Requirements for non-U.S. issuers matter since USDT is issued in a foreign country by a company.
The company said it would adhere to the newly adopted framework. However, all the implementing rules are not yet finalized by federal agencies. The U.S. Treasury put forward anti-money laundering regulations back in April.
The firm also supports USAT, an independent token tailored for the U.S. market. USAT is issued by Anchorage Digital Bank and is kept in reserve by Cantor Fitzgerald.
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