Tether's KPMG Audit Confirms Robust Reserves Amid Regulatory Scrutiny

Tether's recent KPMG audit has provided significant reassurance about its reserve backing and operational integrity. The audit confirmed a reserve surplus of $6.814 billion as of December 31, 2025, which surpasses the total USDT tokens in circulation. This milestone addresses long-standing skepticism about Tether's reserve backing and transparency.

The lack of price volatility is typical for USDT, which has maintained its peg to the US dollar for over a decade despite market turbulence. However, regulatory scrutiny on two fronts may pose challenges for Tether. In the United States, the Department of the Treasury proposed rules to implement Section 3 of the GENIUS Act, aiming to regulate payment stablecoin issuance, offering, and sale by mid-2028.

Tether faces intensifying regulatory scrutiny in Europe as well. The European Union's Markets in Crypto-Assets (MiCA) regulation came into effect on July 1, 2026. Unlike some stablecoin issuers, Tether opted not to seek authorization under MiCA, leading to major regulated exchanges like Revolut delisting or restricting USDT for European customers.

Tether has announced a strategic pivot alongside the audit, investing $50 million into decentralized AI model training infrastructure. This move signals Tether's ambition to diversify beyond stablecoins into the burgeoning field of artificial intelligence.