Tether, the issuer of the world’s largest stablecoin, is in talks with a Big Four accounting firm for a long-awaited full audit of its reserves. CEO Paolo Ardoino believes this effort will be much easier under U.S. President Donald Trump, given his administration’s pro-crypto stance.
For years, Tether has promised greater transparency regarding its $140 billion worth of dollar-pegged tokens. While it publishes quarterly reports on its reserves, the lack of a full audit has raised concerns in the financial and crypto communities. Now, with Trump advocating for cryptocurrency regulation and oversight, Tether sees an opportunity to finally secure the credibility it has long sought.
Why Tether’s Audit Matters
Tether’s USDT stablecoin is crucial to the global crypto market, serving as a bridge between digital assets and traditional finance. Its ability to maintain a 1:1 peg to the U.S. dollar relies on confidence in its reserves. A full audit by a top accounting firm—such as PwC, EY, Deloitte, or KPMG—could help strengthen that trust.
Ardoino emphasized that securing an audit is a top priority, but he did not disclose which firm Tether is negotiating with or when the audit might be completed. He also credited Trump’s regulatory approach for making it possible, contrasting it with what the crypto industry has called “Operation Chokepoint 2.0”—a perceived effort by previous administrations to limit crypto companies’ access to banking services.
Trump’s Crypto-Friendly Stance
Since taking office, Trump has positioned himself as a “crypto president,” signing an executive order to establish a strategic cryptocurrency reserve and vowing to revamp digital asset regulations. This shift in policy is expected to encourage more institutional players, including auditing firms, to engage with crypto companies like Tether.
“If the President of the United States says this is a top priority, Big Four firms will have to listen,” Ardoino stated.
Tether’s Financial Moves
Tether has been making headlines not just for its push toward an audit but also for its growing influence in global finance. In 2024 alone, the company purchased over $33.1 billion in U.S. Treasury bills, making it the seventh-largest holder of U.S. government debt.
As of December 31, Tether reported more than $94 billion in U.S. Treasury bills and $108 million in cash and bank deposits, according to an independent assessment by BDO Italia.
Additionally, 99% of its Treasury holdings are managed through Wall Street firm Cantor Fitzgerald, whose former CEO, Howard Lutnick, now serves as Trump’s commerce secretary. This connection further underscores the intertwining of Tether with the broader financial and political landscape.
What’s Next for Tether?
With a new Chief Financial Officer, Simon McWilliams, recently brought in to oversee financial transparency, Tether seems determined to follow through with its audit. If successful, this could set a precedent for other stablecoin issuers and strengthen regulatory confidence in the sector.
The coming months will be crucial for Tether as it navigates negotiations with a Big Four firm and works toward completing its long-awaited audit. Whether this move will fully address concerns about its reserves remains to be seen, but it’s clear that regulatory winds are shifting in its favor.
