Tether Receives First Full Audit – But Does the Criticism End?

Tether has finally done it: the world’s largest stablecoin issuer has obtained a complete audit from one of the most respected accounting firms. Yet just as this milestone is reached, the rules of the game for U.S. stablecoins are changing—and suddenly, it feels as if Tether is trying to score points with a presentation booth outside the court of public opinion.
This week, Tether International announced that KPMG—one of the "Big Four" accounting firms—has issued an unqualified opinion on the company’s 2025 financial statements. This is a landmark, as for years, only half-hearted reviews by smaller auditors fueled skepticism rather than trust. Now that the numbers have been officially confirmed, one has to ask: Is this finally the long-awaited proof of legitimacy—or just a clever maneuver to soften regulatory pressure?
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The Long Road to Greater Transparency
Anyone who has followed Tether’s history knows the company has faced relentless criticism. For years, it provided irregular and often vague attestations that few took seriously. The main accusation? That Tether holds a significant portion of its reserves not in liquid, safe assets, but in risky loans and other hard-to-value items. Critics accused the company of window-dressing its balance sheet—after all, Tether benefits when the market trusts its stability and the stablecoin remains pegged 1:1 to the U.S. dollar.
Only under massive pressure from regulators, investors, and the crypto community has Tether begun to open up. The KPMG audit is a result of that pressure—even if it comes far too late.
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The Numbers in Focus—and What They Really Mean
According to the audit, Tether’s liabilities stood at $85.37 billion as of the reporting date, while its reserves totaled $92.18 billion. That sounds good on the surface: a surplus of over $6.8 billion. But how is this reserve composed?
Tether states that about 85% consists of liquid assets such as cash, government bonds, and short-term deposits. The remainder is spread across loans, corporate bonds, and other assets. Sounds solid? Not necessarily



. A closer look reveals that not all of these reserves can be converted to cash immediately—and that has always been the sticking point.
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Regulation Strikes Back—and Tether Reacts
The timing of the audit’s release is no coincidence. At the same time, the U.S. Congress has proposed new stablecoin guidelines—the Payment Stablecoin Act. The rules are strict: going forward, stablecoin issuers must hold 100% of their reserves in highly liquid assets and submit to regular audits.
For Tether, this could mean one of two things: adapt or risk being left in a regulatory no-man’s-land. “Tether is using the audit to position itself as a serious player while regulation tightens,” says financial expert Dr. Markus Müller. “But whether that’s enough to regain lost trust remains to be seen.”
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The Criticism Persists—and New Questions Arise
Despite the audit, doubts remain. While KPMG issued an unqualified opinion, this is not the same as a comprehensive review of all business processes or a risk assessment. Then there’s Tether’s heavy reliance on crypto markets: a major loss of confidence—whether from regulatory action or a market panic—could shake the company to its core.
Another issue: Tether remains a highly opaque entity, headquartered in Hong Kong. Who truly stands behind the company remains a mystery—and in the financial world, secrecy is rarely a strong selling point.
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Conclusion: A Step Forward—but Not a Free Pass
The audit is undoubtedly progress. It shows that Tether is willing to increase transparency—at least on paper. But whether this is enough to finally dispel years of accusations about opacity and insufficient backing remains uncertain.
Regulators and investors will be watching Tether closely. If the company delivers further audits and complies with the new U.S. guidelines, trust in the stablecoin could indeed grow. If not, the criticism is likely to escalate—and potentially lead to harsh consequences.
One thing is certain: the fight for credibility in the crypto world continues. And Tether has just proven it still has a long way to go.