Tether, the issuer of USDT, said it has hired a Big Four accounting firm to perform its first complete independent audit of its financial statements. This takes the company beyond the reserve attestations that have become the standard for the stablecoin industry.
According to a report, the company stated the audit will cover the company’s financial statements, reserves, internal controls, and reporting systems. This comes at a time when the stablecoin industry’s backing and transparency continue to increase.
The company added that a full audit is different from the attestation process that the stablecoin industry has adopted so far. Attestations provide a snapshot of reserves at a specific time, while an audit examines financial reporting in a broader and more detailed manner.
Tether Advances Full Audit Process
According to Tether, the onboarding phase with the accounting firm concluded a few weeks ago. This phase involved reviews of internal systems and processes.
The audit process comes as there continues to be a focus on reserve quality and disclosure for stablecoin issuers. These are ongoing concerns given the market position of Tether as the issuer of the most capitalization-weighted stablecoin.
Tether announced that the market capitalization for USDT had exceeded $184 billion. The company also said that reserve holdings are being adjusted, with listed securities set to be moved in the coming days.
The company stated that the audit process would give greater visibility to the composition and positioning of the reserves. This could give greater visibility regarding the composition and reporting of reserves.
Also Read: Tether Invests $5.2 Million in Ark Labs to Supercharge Bitcoin Stablecoins
Tether explained that it has been preparing over several years to undergo a full audit. This preparation included improvements to its governance, financial processes, and internal infrastructure.
CFO Appointment Supports Tether Audit Push
In addition to this, the company highlighted its appointment of a new chief financial officer, Simon McWilliams, in early 2025. This is part of its broader improvements to its financial processes.
Tether said that the auditor was selected through a competitive process. Multiple firms were involved in the review stage due to the scale and complexity of the engagement.
In addition to the audit, Tether announced an investment in Ark Labs. The company is the developer behind the Bitcoin infrastructure project Arkade.
The company announced that the investment was part of a $5.2 million funding round. Part of the funds will be for infrastructure aimed at improving the movement and settlement of stablecoins on Bitcoin.
The change reflects two simultaneous trends in Tether’s plans. The company is undertaking a full audit, as well as continuing to support infrastructure related to the use of stablecoins.
The firm has announced the audit engagement, not its completion. The next step depends on whether a full financial statement audit is released and what it reveals about reserves and liabilities.
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