Tether Clears First Full Audit From KPMG Without Publishing the Statements

§ 01 Executive Snapshot

• What: Tether completed its first full audit by KPMG, receiving an unqualified opinion on its financial statements for the year ending December 31, 2025.
• Who: Tether International, S.A. de C.V., KPMG, Simon McWilliams (CFO), Paolo Ardoino (CEO).
• Why it matters: This audit addresses long-standing concerns regarding Tether's transparency and the backing of its USDT stablecoin, although the audit's scope and public disclosure remain limited.

§ 02 Key Developments

• KPMG issued an unqualified opinion on Tether's financial statements, confirming $6.814 billion in reserves above liabilities as of December 31, 2025.
• The audited reserves report indicated a $476 million difference from Tether's previously reported figures based on a different accounting framework (IFRS vs U.S. GAAP).
• Tether's reserves include $17.45 billion in precious metals, $8.43 billion in Bitcoin, and $17.04 billion in secured loans.

§ 03 Strategic Context

• Tether's audit marks a significant milestone in its history, as it has faced scrutiny for lacking an audit by a major accounting firm, which has raised doubts about its asset backing.
• The audit comes in the context of evolving regulatory landscapes for stablecoins, highlighting the need for greater transparency and compliance among issuers.

§ 04 Strategic Implications

• The completion of the audit could improve market confidence in Tether's stability and its USDT token, potentially affecting its market position in the stablecoin sector.
• Long-term implications may include increased regulatory scrutiny and the necessity for Tether to enhance its transparency practices in accordance with emerging laws.

§ 05 Risks & Constraints

• Tether's audit did not cover all its operations and lacks public disclosure of detailed financial statements, which could lead to continued skepticism among investors.
• The changing regulatory environment for stablecoins may pose challenges for Tether, particularly if it does not meet future compliance requirements under the GENIUS Act.

§ 06 Watchlist / Forward Signals

• Future developments to monitor include Tether's potential decision to publish the audited financial statements and any changes in regulatory requirements impacting stablecoin issuers.
• The market's reaction to Tether's ongoing financial performance and equity buffer adjustments will signal the stability and trust in USDT going forward.