Does USDT have sufficient reserves? Tether reportedly hires KPMG for a comprehensive audit.

The Financial Times of the UK reported on Thursday, citing informed sources, that Tether, the world’s largest stablecoin issuer, has commissioned BDO, the Italian branch of the fifth-largest accounting firm, to conduct a comprehensive financial audit of its USDT, which has a market value of $185 billion.
At the same time, Tether has also hired another of the Big Four accounting firms, PwC, to assist in organizing and optimizing the company’s internal systems and financial processes in preparation for the upcoming audit. This is seen as Tether’s most substantial and groundbreaking step towards “financial transparency” since its establishment.
Tether’s CFO, Simon McWilliams, stated earlier this week that the company has “long been operating in accordance with the auditing standards of the Big Four accounting firms” and promised that “the final audit report will definitely be delivered to the public on time.”
This auditing action comes as Tether prepares to enter the U.S. market and initiate a new round of financing. The Financial Times reported earlier that Tether sought to raise $15 billion to $20 billion in the market with a staggering valuation of $500 billion, but high pricing and potential regulatory risks have deterred many institutional investors.
Currently, Tether’s reserve assets are primarily verified monthly by BDO Italia, the Italian branch of the world’s fifth-largest accounting firm, through “Attestation” reports, which are fundamentally different from full financial statement audits that require detailed examination of assets, liabilities, internal controls, and reporting systems.
Since its launch in 2014, doubts about whether USDT has sufficient dollar reserves have never ceased. Looking back to 2021, the foreign media outlet CoinDesk requested the disclosure of USDT’s reserve details from the New York Attorney General’s Office under the Freedom of Information Law (FOIL), and Tether even went to court over this, ending up losing twice.
After a protracted legal battle lasting two years, these confidential documents were finally revealed in 2023. Data showed that as of March 2021, most of Tether’s reserves, which amounted to $40.6 billion at the time, were held at Deltec Bank in the Bahamas, with a significant portion in commercial paper issued by Chinese and international banks, including Agricultural Bank of China, Bank of China (Hong Kong), and Industrial and Commercial Bank of China.
These revelations sparked discussions in the market regarding liquidity and credit risks. However, in recent years, Tether’s asset allocation has gradually shifted towards short-term U.S. Treasury securities and reduced its holdings of commercial paper.