Tether Audit by KPMG: What the Unqualified Opinion Means for USDT in the EU

Stablecoin issuer Tether announced on August 13, 2026 that the audit firm KPMG U.S. has audited its financial statements for the 2025 financial year and issued an unqualified audit opinion. According to the issuer, it is the first full annual audit in the company’s history. For the German market, what counts most is what the announcement does not address: authorised providers in the EU have not carried USDT since the transition period under the Markets in Crypto-Assets Regulation ended, and an audit leaves that legal position untouched.

Which stablecoins are authorised under MiCA and how USDT, USDC, EURC and others compare is shown in our stablecoin list.

This article is an assessment, and it keeps the two questions apart. Everything drawn from the issuer’s announcement, from Regulation (EU) 2023/1114, from the German Crypto Markets Supervision Act and from the German Income Tax Act is documented, and every reference is named. Anything beyond that is marked as an assessment.

Tether audit by KPMG: what was reported on August 13, 2026

The issuer’s announcement is titled “Tether Completes the Largest Inaugural Financial Audit in History” and is dated August 13, 2026. It names KPMG U.S. as the auditing firm, December 31, 2025 as the reporting date and an unqualified audit opinion as the outcome. On the company’s own account, reserves exceed liabilities as at that date by $6.814 billion.

Two company representatives are quoted. Chief executive Paolo Ardoino speaks of a “defining moment for the stablecoin industry”, and chief financial officer Simon McWilliams says the accounts have been put through an audit by a Big Four firm. Both are statements by the audited company about its own audit, not findings by the auditors. The announcement sits in the issuer’s newsroom.

News service CoinDesk reported on it the same day and puts the market capitalisation of USDT at more than $180 billion. The issuer cites issuance of $184.6 billion for the second quarter of 2026. The two figures refer to different points in time and should be read as a range of roughly $180 billion to $185 billion.

Unqualified audit opinion: what the term means in auditing

An unqualified opinion is the most favourable outcome an audit can produce. It states that, in the auditors’ judgement, the audited accounts give a true and fair view of the company’s assets, financial position and earnings in all material respects.

What the opinion is not belongs to the picture just as much. It says nothing about whether a business model is viable, whether the assets would be liquid at book value in a crisis, or whether a product is suitable for particular investors. An audit opinion covers a set of accounts and a period that has ended. That is what determines how far you can take the announcement.

Attestation and annual audit: the difference that turns this into news

Until this announcement the issuer published quarterly attestations. As CoinDesk describes it, an attestation examines clearly delimited disclosures, such as the size and composition of the reserves at a single point in time. An audit takes in the books as a whole: transactions, assets, liabilities, income, cash flows and the evidence behind them.

That is where the news value lies. For years the recurring criticism of this issuer was that a snapshot of the reserves is something other than an audited balance sheet. For 2025 that gap is closed. According to the company, the audit also involved physical stocktaking, down to counting individual gold bars; the issuer puts its gold holdings at more than 146 tonnes.

The remaining figures in the announcement come expressly from the attestation for the second quarter of 2026 rather than from the audited accounts: $1.5 billion in net operating profit, a $4.11 billion reserve buffer and around 650 million users. Anyone quoting them is quoting a self-declaration covering a later period rather than the audit result.

Reporting date December 31, 2025: why an annual audit stays a snapshot

The audited accounts end on December 31, 2025. More than seven months lie between that reporting date and publication on August 13, 2026, and the audit opinion does not cover what happened in between. This is how every annual audit works, in this case as much as at any listed corporation.

Why the quarterly figures only partly close the gap

Attestations remain available for the period after the reporting date, most recently for the second quarter of 2026, with a narrower subject matter. The following judgement is explicitly an assessment: a single audited financial year says little about how the books look twelve or eighteen months later. Whether the issuer will repeat the audit annually is open, and the announcement contains no commitment to that effect.

Article 48 MiCA: why an audit does not replace authorisation as an e-money token

For German investors, where a stablecoin can be traded is decided by European authorisation law rather than by the quality of an audit. Regulation (EU) 2023/1114 defines an e-money token in Article 3(1)(7) as “a crypto-asset that purports to maintain a stable value by referencing the value of one official currency”. A token pegged to the US dollar falls under that definition.

Article 48(1) of the Regulation governs who may offer such tokens in the Union. In its wording, a person shall not offer e-money tokens to the public in the Union or seek their admission to trading unless that person is the issuer of those tokens and is “authorised as a credit institution or as an electronic money institution” and has notified a crypto-asset white paper to the competent authority and published it in accordance with Article 51. The full text of the Regulation on EUR-Lex sets out the requirements in Title IV.

Both conditions are supervisory in nature: an authority grants an authorisation, and a white paper is notified to an authority and published. An audit firm can substitute for neither, however thoroughly it works. That is the point at which most reports on this audit stop.

Transition period under Article 143 MiCA and Section 50 KMAG: why it ended earlier in Germany

Titles III and IV of the Regulation, which set the rules for asset-referenced tokens and e-money tokens, have applied since June 30, 2024 under Article 149(3). For service providers, Article 143(3) provided a transitional arrangement: anyone who had provided their services before December 30, 2024 under the law then applicable could carry on doing so until July 1, 2026 at the latest. The same paragraph allows member states to shorten that period.

Germany made use of that option. Section 50(2)(3) of the Crypto Markets Supervision Act provides that the authorisation deemed to continue expires “at the end of December 31, 2025 at the latest”. For established providers in the German market the transition therefore closed six months ahead of the European outer limit. Anyone working from the frequently cited middle of 2026 has the wrong date for Germany.

USDT held in Germany: where your balances can still sit after the deadline

From this follows the practical part of this article: where exactly are your USDT? Three constellations need to be told apart. First, a balance with a service provider authorised in the EU that can no longer be held there in USDT. Second, a balance with a provider that has no EU authorisation. Third, a holding in self-custody, meaning a wallet whose keys you hold yourself.

For the first group the question already has a date attached. Payment provider Revolut has announced the forced conversion of European USDT balances as of August 31, 2026; cryptoticker.io set out the process on August 10, 2026 in the article Revolut delists USDT. If you hold your balance with an authorised provider, check that provider’s inbox and help centre first to see whether a deadline is running. Which houses hold an EU authorisation is set out in the comparison of regulated crypto exchanges.

For the second group the situation looks different. A provider without authorisation may no longer serve German customers, and when it will close access cannot be predicted from outside. That is an assessment drawn from the pattern of recent months, and it says nothing about any particular company.

Forced conversion and Section 23 of the Income Tax Act: why a forced swap can count as a sale

If a provider automatically converts your balance into another crypto-asset or into euros, that is no neutral event for tax purposes. Section 23(1) sentence 1 no. 2 of the German Income Tax Act covers disposals of other assets “where the period between acquisition and disposal is not more than one year”. A conversion inside that period can trigger a taxable gain or a loss, even where you did not set it in motion yourself.

Two further passages of the same provision matter here. Where several units of the same foreign currency are held, the amounts acquired first are deemed to have been disposed of first. And under subsection 3 sentence 5, gains stay tax-free if the total gain from private disposal transactions in the calendar year “amounted to less than 1,000 euros”. With a dollar-pegged token such a gain is often small, and it can still arise through the exchange rate to the euro.

Because a forced conversion happens without any action on your part, the timing and the consideration are easily lost in account statements. A portfolio tracker logs such events, provided there is a connection to the provider; the common tools are listed in the comparison of crypto tax tools and portfolio trackers.

Self-custody of stablecoins: what your own wallet solves and what it leaves open

The third constellation is the least conspicuous of the three. Anyone holding USDT in a self-managed wallet is at first untouched by a delisting at a service provider: the Regulation addresses issuers and service providers, not the private ownership of a crypto-asset.

What that solves is availability alone. The route back into euros runs through a service provider sooner or later, and the same authorisation rules take hold there. Taking a detour via a further token creates additional transactions, and each of them has to be assessed on its own under Section 23 of the Income Tax Act.

What this article cannot document: the limits of this assessment

First, the public register. The European Securities and Markets Authority maintains a register of notified white papers for e-money tokens. Its search mask loads its contents by script and could not be queried directly for this analysis. This article therefore makes no statement about the current contents of the register and rests solely on the text of the Regulation and on observable market events.

Second, the reach of the audit opinion. Whether and at what interval the audit will be repeated does not emerge from the announcement. A one-off audit of a completed financial year is a different matter from a continuing audit practice.

Third, the question of how many investors in Germany are affected. Reliable figures on that are not available, and this article does not estimate them either.

Putting the Tether audit in context: what to take away

1. Check where your USDT sit. Look in your provider’s inbox and help centre to see whether a deadline for conversion or withdrawal is running. Whether your provider holds an EU authorisation is set out in the comparison of regulated crypto exchanges.
2. Put a forced conversion on record. Note the date, the amount and the value in euros as soon as a provider converts your balance automatically, because under Section 23 of the Income Tax Act it can become a taxable event. The tools for that are listed in the comparison of crypto tax tools and portfolio trackers.
3. Keep the audit apart from the authorisation question. The audit opinion covers financial statements as at December 31, 2025; tradability in the EU is decided by Article 48 of Regulation (EU) 2023/1114. If you want to hold your assets independently of a service provider, the comparison of crypto software wallets is the next step.

(As of August 16, 2026. This article is not investment advice. Prices and fee structures change; check the terms with the provider before you buy.)