Tether Engages KPMG and PwC for Groundbreaking Audit
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In a significant move, Tether has enlisted the services of both KPMG and PwC to conduct its upcoming audit, as reported by the Financial Times. This marks a pivotal moment for the company that issues the USDT cryptocurrency, as it prepares for its first official audit, having previously relied on BDO Italia for attestation.
The Financial Times disclosed that while KPMG will perform the audit, PwC has been tasked with preparing Tether for this critical evaluation. As of now, the timeline for this operation remains undisclosed, and confirmations from the parties involved have yet to be made.
Earlier this week, Tether announced its agreement with one of the Big Four consulting firms without revealing the specific name at that time. The Financial Times’ sources, reportedly close to the situation, provided the information regarding the dual engagements.
There has been a significant transformation within the cryptocurrency sector over recent years. Not too long ago, many entities in the industry struggled to secure partnerships with major firms like the Big Four, mainly due to the negative perception surrounding crypto. Today, Tether, which boasts over $180 billion in reserves backing USDT, is managing to contract not just one but two leading consulting firms, assuming the accuracy of the Financial Times report.
According to these reports, PwC’s involvement will focus on preparing the company for the upcoming audit, while KPMG will handle the audit execution itself. The consulting firms have not responded to inquiries from the press regarding this cooperation.
This audit is highly anticipated, drawing attention from both cryptocurrency enthusiasts and critics who have long questioned Tether’s transparency practices under the leadership of Paolo Ardoino. Beyond its issuance of USDT, Tether engages in diverse investments across various sectors, including energy, agriculture, and media, even having interests in Italy through Chora. Moreover, Tether’s reserve management strategy appears to be more flexible compared to some competitors, with allocations in gold and Bitcoin in addition to a small but notable amount of collateralized loans.
The reasons behind Tether’s decision to seek a comprehensive audit, which is not a legal requirement for USDT operations, remain unclear. This audit will not automatically render USDT compliant with the new American regulations established by the Genius Act, which mandates reserves to be composed entirely of cash and cash-like instruments, specifically bonds with a maximum maturity of three months.
As this audit unfolds, it is expected to provide crucial insights into Tether’s operations and could significantly impact perceptions in the cryptocurrency community.
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