Tether Seeks Historic Audit Amid Pressure for Transparency

Tether, the company behind the world's largest stablecoin USDT, has announced its collaboration with one of the 'Big Four' accounting firms to conduct a comprehensive audit of its reserves. The move aims to verify that each token is backed 1:1 with assets amid intensifying industry pressure for greater transparency.

The CEO, Paolo Ardoino, confirmed in comments to Reuters on March 21 that obtaining a full audit represents a top priority for the firm. He suggested the process might be facilitated by US President Donald Trump's supportive stance toward cryptocurrency integration.

Tether reported significant financial performance in its most recent attestation for Q4 2024, highlighting $13.7 billion in profit for 2024, including approximately $6 billion in the fourth quarter alone. The company also reported $113 billion in direct and indirect holdings alongside $7 billion in excess reserves, representing a 36% year-over-year increase.

Critics have consistently questioned Tether's claims regarding its reserves, with some arguing that its quarterly attestations rather than comprehensive independent annual audits provide insufficient assurance to regulators and investors.