Tether announced on August 14, 2025 that KPMG US audited its 2025 financial statements, the first full Big Four audit for the company behind USDT. Here is what that audit actually proves about stablecoin risk, what it does not cover, and how to track your USDT and other stablecoin exposure alongside your stocks in one view.
What did KPMG actually audit at Tether?
KPMG US audited Tether's 2025 financial statements, meaning it examined the company's full balance sheet and reserve holdings under recognized accounting standards, not just a snapshot attestation. This is a meaningful step up from the quarterly attestation reports Tether had previously published through firms like BDO Italia.
The distinction matters. An attestation confirms that reserves existed on a single date and matched reported figures. A full audit tests internal controls, verifies the completeness of assets and liabilities over a period, and carries auditor liability under standards from the Public Company Accounting Oversight Board (PCAOB).
For a stablecoin that circulates over $110 billion USDT at the time of the announcement, independent verification by a Big Four firm addresses years of transparency criticism. It does not, however, eliminate every category of risk you carry when you hold the token.
What is a stablecoin, and why does the audit matter?
A stablecoin is a crypto token designed to hold a fixed value, usually $1.00, by backing each token with reserves such as cash, US Treasury bills, and short-term deposits. USDT (Tether) is the largest by market cap, followed by USDC (Circle).
The audit matters because a stablecoin is only as trustworthy as the reserves behind it. If the backing assets are illiquid, overstated, or wrongly valued, the token can lose its peg during a rush of redemptions. That is exactly what happened to TerraUSD (UST) in May 2022, which collapsed from $1.00 to near zero.
What a Big Four audit does prove
A Big Four audit gives you three concrete assurances that an attestation cannot:
- Reserve completeness. Auditors verify that reported assets genuinely exist and are owned by the issuer, not double-counted or borrowed for the reporting date.
- Valuation accuracy. Treasury bills, repos, and cash equivalents are checked against market values, so the $1.00 backing is tested, not assumed.
- Auditor accountability. KPMG stakes its reputation and legal liability on the opinion, which raises the cost of misstatement dramatically.
What the audit does not cover
An audit is historical and does not guarantee future solvency or peg stability. Specifically, it will not protect you from:
- Redemption freezes during extreme market stress, when Tether can pause conversions per its own terms.
- Counterparty risk at the exchange where your USDT actually sits, which is separate from Tether's own solvency.
- Regulatory action that could restrict USDT in specific jurisdictions, as seen with MiCA rules pressuring some European listings.
Why exchange risk still matters even with clean reserves
Even fully audited reserves at Tether do nothing for you if the exchange holding your USDT fails or freezes withdrawals. Your practical risk splits into two layers: issuer risk (Tether itself) and custody risk (where your tokens sit).
The FTX collapse in November 2022 is the clearest example. Customers held real assets on paper, but the exchange's insolvency locked them out regardless. A clean Tether audit would not have saved a single FTX depositor.
This is why tracking where your stablecoins live is as important as trusting the issuer. If you spread balances across Binance, Bybit, and a self-custody wallet, you need a single view of the totals. You can learn how to track Binance and Bybit in one dashboard without trading keys using read-only API connections that never expose your funds. For a broader risk check, our guide on how to check your crypto exchange risk walks through the warning signs.
How USDT compares to other stablecoins on transparency
USDT now leads on audit status with a full KPMG audit, but it is worth comparing the major stablecoins on the dimensions that actually affect your peg risk.
| Stablecoin | Issuer | Verification | Main backing |
|---|---|---|---|
| USDT | Tether | KPMG full audit (2025) | US Treasuries, cash |
| USDC | Circle | Deloitte attestations | Treasuries, cash |
| DAI | MakerDAO | On-chain, no audit firm | Crypto, RWA collateral |
| JPYC | JPYC Inc | Regulated (Japan) | Yen deposits |
Different stablecoins solve different problems. If you hold yen-denominated tokens for currency exposure, our breakdown of the JPYC yen stablecoin and what it means for your holdings explains how non-dollar stablecoins fit a portfolio.
How to track USDT and stablecoin exposure alongside stocks
Track stablecoins as a distinct asset class in your portfolio, because they behave like cash but carry issuer and exchange risk that real cash does not. Most investors ignore this and let USDT balances sit invisible across three or four exchanges.
Treat stablecoins as their own line, not idle cash
Group your USDT, USDC, and any other pegged tokens into a single stablecoin allocation so you can see it at a glance. This tells you your true dry powder and your concentration in one issuer.
- Total stablecoin percentage of your crypto portfolio, so you know how much is parked versus invested.
- Issuer concentration, for example how much of your stable balance is USDT versus USDC.
- Venue concentration, meaning how much sits on any single exchange that could freeze withdrawals.
See crypto and equities in one portfolio view
Most retail investors hold both, yet broker apps and exchange apps refuse to talk to each other. PortfolioTrackr solves this by pulling read-only balances from crypto exchanges and brokerage accounts into a single dashboard, so your AAPL shares, BTC-USD holdings, and USDT float appear side by side.
If you are wiring up multiple accounts, our step-by-step guide on connecting your brokerage account to a portfolio tracker covers the safe way to do it. For the full picture on mixing asset classes, see how to track crypto and stocks together in one portfolio.
How to read future Tether audits without getting fooled
Read every future audit for scope, frequency, and the exact opinion type, not just the headline that KPMG signed off. A one-time audit is progress, but ongoing quarterly audits matter far more for a token you hold long term.
Watch for these specifics when the next report drops:
- Opinion type. An unqualified (clean) opinion is the goal. A qualified or adverse opinion signals problems.
- Reporting period. Confirm the audit covers a full period, not a single day, which is the attestation trap.
- Reserve composition. Look at the split between US Treasuries, cash, and riskier assets like secured loans or precious metals.
- Auditor continuity. Repeated audits by the same firm build a track record. A one-off does not.
Applying this same skepticism to tokenized products is smart too. If you hold synthetic equity tokens, our analysis of tokenized stocks versus owning real shares shows why the wrapper matters as much as the underlying.
The bottom line
Tether's KPMG US audit is a genuine transparency milestone that moves USDT from quarterly attestations to a full Big Four audit, verifying that reserves exist and are valued correctly. It does not remove exchange custody risk, redemption freeze risk, or regulatory risk, which is why where you hold USDT matters as much as who issues it.
Treat your stablecoins as a tracked asset class, watch issuer and venue concentration, and keep your crypto and equities in one view. PortfolioTrackr lets you monitor your USDT float, BTC-USD, and stock positions together so a stablecoin no longer hides as invisible idle cash.
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Frequently asked questions
Is Tether safe now that KPMG has audited it?
The KPMG audit makes Tether more transparent by verifying that reserves exist and are valued correctly, which reduces issuer risk. It does not eliminate risk. You still face exchange custody risk, possible redemption freezes during stress, and regulatory restrictions in some jurisdictions. Where you hold USDT matters as much as who issues it.
What is the difference between a stablecoin audit and an attestation?
An attestation confirms reserves existed on a single date and matched reported figures. A full audit tests internal controls, verifies completeness of assets and liabilities over an entire period, and carries auditor legal liability under recognized standards. Tether's KPMG audit is a full audit, a meaningful upgrade from its prior quarterly attestations.
How do I track my USDT balance across multiple exchanges?
Use a portfolio tracker with read-only API connections to pull balances from each exchange into one view. PortfolioTrackr aggregates USDT, USDC, and other stablecoins from exchanges like Binance and Bybit alongside your stocks, so you can see total stablecoin exposure and how much sits on any single venue.
Should I count stablecoins as cash in my portfolio?
Track stablecoins as their own asset class, not as plain cash. They behave like cash but carry issuer and exchange risk that real bank cash does not. Grouping USDT and USDC into a stablecoin allocation shows your true dry powder plus your concentration in one issuer or one exchange.
What should I look for in the next Tether audit report?
Check the opinion type, the reporting period, and reserve composition. An unqualified clean opinion covering a full period is the goal, not a single-day snapshot. Look at the split between US Treasuries, cash, and riskier assets. Repeated audits by the same firm build a track record that a one-off cannot.