Tether (USDT) Is Finally Undergoing a Full Financial Audit by a Big Four Accounting Firm

After years of being questioned about its reserves, Tether (USDT) is finally taking a major step toward financial transparency

Tether, the world’s largest stablecoin issuer, is finally set to undergo a full financial audit by a Big Four accounting firm. This move, which follows years of criticism and suspicion, aims to prove that Tether’s USDT reserves are backed at a 1:1 ratio with U.S. dollars, as the company has claimed.

As reported by Benzinga, Tether CEO Paolo Ardoino stated that the U.S. administration is now more crypto-friendly, which will likely facilitate a smoother process for the company to complete the audit. This will be the first time Tether has been fully audited by an independent firm.

For years, there have been concerns about Tether’s financial stability, especially following the shocking collapse of FTX. While Tether has been releasing quarterly reports, which provide a snapshot of the company’s assets, these reports are not a complete financial audit.

This lack of transparency has been a major point of contention for critics, who argue that without an independent audit, there’s no proof other than Tether’s word that its USDT tokens are backed by sufficient reserves. This has left the industry in a state of doubt and speculation.

However, it seems like Tether is finally yielding to pressure and engaging a Big Four firm—PwC, EY, Deloitte, or KPMG—for a full-scale audit. This decision comes in response to growing demand from investors and regulators for greater transparency into Tether’s operations.

Earlier this month, Tether took some steps towards financial clarity by searching for a chief financial officer, and later appointed Simon McWilliams as its CFO. His hiring marks a push towards greater transparency in USDT operations.

Image 1- Provided by Paolo Ardonio on Twitter, published by TradingView, March 22, 2025

The image explains that Tether’s USDT is designed to hold a steady value by being pegged to the US dollar at a 1:1 ratio. In simple terms, for every USDT in circulation, there should be an equivalent amount of reserves backing it. This setup helps traders gain confidence that they can always exchange their USDT for real dollars, keeping the stablecoin’s value intact.

Despite Tether’s role in the crypto market and its claims of having more than $80 billion in reserves, the company has managed to avoid being fully audited by a Big Four accounting firm for years. This has led to skepticism from industry figures like Charles Hoskinson, CEO of Cardano, who pointed out that, despite being the world’s fourth-largest cryptocurrency, Cardano is fully audited by a Big Four firm, while Tether, a key player in the market, is not.

Earlier in the year, Tether ran into trouble with the U.S. Commodities and Futures Trading Commission (CFTC). The CFTC found issues with Tether’s claims about its reserves, leading to an investigation and ultimately, a $41 million fine. This only added fuel to the fire, increasing doubts and sparking fresh concerns about whether USDT is truly as secure as the company insists.

The news of Tether engaging a Big Four firm for an independent financial review is a pivotal moment for the crypto industry. For years, there have been concerns about whether Tether’s USDT is genuinely backed 1:1 by reserves, with other concerns regarding transparency, leaving room for speculation and uncertainty.

By bringing in a Big Four accounting firm, Tether is taking a bold step to clear the doubts and gain trust in the world’s most widely used stablecoin. Ultimately, this next audit could serve as an important moment for Tether’s long-term credibility. If completed, it might help the company to navigate global regulations and strengthen USDT’s role in crypto trading.

For now, the industry has been watching and waiting to see whether this awaited financial review will confirm Tether’s claims or expose new challenges.