Tether announced today that it has completed a competitive bidding process and selected one of the “Big Four” accounting firms (Deloitte, PwC, EY, or KPMG) to conduct its first full financial statement audit. According to Bloomberg, Tether’s planned private fundraising of up to $20 billion—selling about 3% equity—has been paused until the audit is completed. The move marks a pivotal step in resolving long-standing concerns over USDT’s reserve transparency, with implications for a potential $500 billion valuation.
For years, the reserve transparency of the world’s largest stablecoin has been a major focus. Tether previously only published quarterly “attestations,” snapshots of assets at a specific point in time. The new “full audit” carries higher authority and complexity under accounting standards: it will review asset liquidity, valuations, and liabilities; assess internal controls and risk management; and ensure compliance with GAAP or IFRS.
CFO: “A Revolution in Quality and Transparency”
Tether CFO Simon McWilliams said the selection reflects Tether’s readiness to meet global top-tier audit standards. “We are deeply aware of our responsibility as the bedrock of the digital asset economy. This comprehensive audit is not just about compliance—it’s about driving the entire industry toward a more transparent and mature future.”
The contrast between past attestations and the new full audit is sharp: attestations are quarterly, cover only snapshot data, provide limited assurance, and are done by second-tier firms. The full audit will be annual/rolling, covering full financial statements, profit/loss, and internal controls, offering reasonable assurance and conducted by a Big Four firm.
Bloomberg: $20B Funding on Hold, Audit Is the Key
Bloomberg reported that Tether’s plan to sell about 3% equity for up to $20 billion has been paused, awaiting audit completion. If executed, the round would value Tether at roughly $500 billion, on par with OpenAI and SpaceX. Investors and bankers had long pressed for higher transparency; Tether’s decision to audit first before resuming fundraising is logical—no clean books, no signature on a $500 billion valuation.
In February, the Financial Times reported Tether had already slashed its target from $20 billion to about $5 billion due to investor pushback on valuation. CEO Paolo Ardoino dismissed the $20 billion figure as a “hypothetical maximum,” saying, “If we don’t sell a single share, we are still happy.” Yet external pressure persists: S&P previously downgraded Tether’s reserve rating after it increased BTC and gold exposure.
GENIUS Act Sets Timeline; Foreign Issuers Cannot Escape
Regulatory pressure is also tightening. The GENIUS Act, signed in July 2025, requires stablecoin issuers with market caps over $50 billion to submit annual audit reports. USDT’s cap easily exceeds this threshold. In February, Senator Jack Reed proposed an amendment to close loopholes, explicitly bringing foreign stablecoin issuers under audit requirements—Tether is incorporated in El Salvador, leaving it exposed to the new rule.
Tether’s timeline: full audit completed by end of 2026. Bloomberg noted that the onboarding process of the audit firm was finalized weeks ago, with full review of Tether’s system architecture, internal controls, and financial reporting. Technical preparations are done; only the audit itself remains.
Market View: The Last Mile of Stablecoin “Fiatization”
USDT currently commands about $184 billion in market cap, representing roughly 70% of the stablecoin market. With BlackRock and NYSE entering the RWA space, Tether’s compliance transformation is critical. Analysts believe a timely audit report would significantly reduce institutional concerns about systemic risk, attracting more traditional capital onto the blockchain. Tether has not yet disclosed which Big Four firm it engaged, but the news has already boosted market confidence.