Tether Seeks Big Four Audit to Boost USDT Transparency

Tether is responsible for USDT, the world’s largest stablecoin with a market capitalization of $184 billion. The reserves for USDT have often been the subject of speculation. One of the Big Four accounting firms now works for Tether.

More than 550 million people use USDT, and the digital crypto version of the world’s leading currency currently represents $184 billion. That’s more than the combined market capitalization of Siemens, Airbus, or Rheinmetall.

Tether is the private company that launched USDT back in 2015 and has enjoyed impressive success since 2020. However, the company also regularly faces critical questions about whether it holds enough capital to convert every USDT into one US dollar in a worst-case scenario.

Now, according to a press release, the company wants to become more transparent and has contracted one of the “Big Four” cryptocurrencies for a full audit.

Deloitte, KPMG, Ernst & Young or WpC – who did Tether choose?

The so-called “Big Four” of auditing firms are Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young, and KPMG, with their global offices. Their audits are the standard for the financial world the company has not yet revealed which of these major firms will be conducting the audit.

For its new project, USAT, which is tailored to the US market, Tether has engaged Deloitte, through its partner Anchorage Digital Bank, as its auditor. Tether states that it already manages its books according to the standards of the “Big Four.”

The award for a comprehensive audit package was made following a competitive bidding process, says Simon McWilliams, Tether’s CFO.

USDT no longer compliant with EU regulations – S&P Tether critics

In December, the rating agency S&P raised doubts about Tether’s reserves for USDT. The company voluntarily publishes quarterly audit reports, such as the recent one by the Italian agency BDO, which certified that “everything is in order.”

However, even this did not prevent USDT from being delisted from major cryptocurrency exchanges after the MiCA regulations came into effect in the EU.

GENIUS rules in the US pose a challenge for Tether and USDT

In the US, Tether Circle’s biggest competitor is USDC. Since last summer, the GENIUS rules have been in effect there, providing a legal framework for stablecoins if issuers meet extensive transparency and custody requirements. USDC (Circle) passed the GENIUS test, while USDT and Tether did not.

An audit by one of the “Big Four” cryptocurrencies would likely be a significant step forward for Tether in making USDT acceptable again in the EU and the US.

Conclusion: Tether is taking a step towards financial standardization for USDT

No one has demonstrated better than Tether how a seemingly boring stablecoin can generate billions in revenue. Tether holds the majority of its USDT reserves in US Treasury bonds, which generate interest payments.

These interest payments flow to Tether and significantly contributed to over $10 billion in profits in 2025. Tether will not want to abandon its USDT business and appears willing to bite the bullet of a fundamental audit. This could not only benefit USDT in the US and EU but also pave the way for a frequently rumored IPO of Tether itself.

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(Featured image by DrawKit illustrations via Unsplash)

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