After operating for more than a decade since 2014, Tether has secured a clean opinion or unqualified opinion from accounting firm KPMG US on its 2025 annual financial report. The results show the company’s total reserves exceed all of its liabilities by a margin of $6.814 billion.
This figure was released after KPMG thoroughly examined the company’s balance sheet, income statement, and cash flow statement for the period ending December 31, 2025. The step marks the first full financial audit in the history of the USDT stablecoin issuer, changing their long-standing tradition of only presenting quarterly attestation reports. A full audit compels the auditing team to directly inspect evidence of the underlying assets backing the coin, trace transaction flows, test operating systems, and assess ownership, valuation, and counterparties.
Physically Counting Every Gold Bar
The sharp difference in this audit lies in the handling of physical assets. The KPMG team refused to simply rely on paper documents from the custodian. They went directly to the storage facility to inspect and physically count Tether’s gold reserves, while verifying the physical existence of each bar of precious metal inside the vault.
This physical gold backs their commodity product, Tether Gold (XAUt), which dominates as the largest gold token in the crypto market with a capitalization of $2.7 billion. This strict level of verification marks a turning point for Tether, which was previously often targeted by public criticism regarding the lack of clarity surrounding its backing reserves.
Profits Flowing to Mattress Company
This audit report also reveals the strength of the company’s internal cash position. Throughout 2025, Tether posted a net profit of $10 billion. This performance continued into the second quarter of 2026, when they recorded a net operating profit of $1.5 billion, driven by gains from United States government bonds (US Treasury) and interest from repo transactions.
This pile of cash was distributed across various business sectors. Tether invested $20 million in Argentine neobank Ualá and placed a similar amount of capital in Brazilian crypto exchange Mercado Bitcoin. Their capital expansion even reached beyond the blockchain sector by leading a $50 million funding round for Eight Sleep, an AI-powered sleep technology company.
Closed to the Stock Market
Although it has recorded financial performance matching that of multi-billion dollar public companies, Tether remains steadfast in maintaining its business structure. Responding to the release of this report, CEO Paolo Ardoino emphasized that the firm has no plans to launch an initial public offering (IPO) in the near future.
For crypto market participants, this document from KPMG puts an end to speculation that has hovered for a decade. It ensures that USDT buyers are transacting with a coin backed by real money, not just empty promises on paper. As reported by Cointelegraph.
Read also: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
