Critics have raised questions about the liquidity and risk profiles of reserve assets, especially under market stress.

The development marks a shift from attestations to a full audit, signaling stronger governance and reporting for reserves.

Tether has engaged a Big Four accounting firm to conduct its first full independent audit of USDT reserves, signaling a major move toward transparency.

The audit, still in progress as of March, follows years of attestations and past audit delays, and is intended to meet higher financial standards.

Industry and regulatory reactions suggest favorable audit results could boost confidence in crypto infrastructure, while opaque details about the firm’s identity remain a point of contention.

Tether’s reserve mix includes cash and short-term dollar equivalents, gold (about 148 tonnes), and increasing Bitcoin holdings, with earlier ratings noting crypto-linked risk.

This move follows prior audit failures and regulatory penalties, occurring amid growing institutional pressure and evolving stablecoin regulation.

Related coverage notes Cantor Fitzgerald’s role and past NYAG and CFTC issues, within the broader push for stablecoin regulation and custody standards.

Context warns that illicit activity remains a concern in crypto, though Tether has mechanisms to counter misuse and is under ongoing regulatory scrutiny.

Industry voices call for ongoing transparency and independent verification of reserve health to underpin market reliability for stablecoins.

Tether is adjusting its reserve structure and may move some securities, aiming to strengthen stability and balance sheet management.

Reactions are mixed: some see the audit as bullish for stablecoins, others criticize the lack of disclosure about the auditing firm.