Original article | Odaily Odaily( @OdailyChina )
Author | Qin Xiaofeng ( @QinXiaofeng888 )
On March 24, Tether, the world's largest stablecoin issuer, announced that it had officially commissioned one of the world's Big Four accounting firms to conduct its first comprehensive and independent financial statement audit since its inception. In the announcement , Tether positioned this self-certification as "the largest audit in the history of financial markets."
Previously, Tether had faced considerable scrutiny regarding the transparency of its reserves, while its competitor Circle (the issuer of USDC) had long ago undergone Deloitte's annual audit, keeping Tether constantly under public scrutiny. Now, Tether has finally signed with one of the Big Four accounting firms, and this long-running transparency race seems to have reached its true conclusion— Circle's stock price plummeted by as much as 20% yesterday.
When USDT, with a market capitalization exceeding $184 billion, begins to undergo the most stringent financial scrutiny, its impact is destined to extend beyond the small circle of cryptocurrencies, touching upon the deeper operating logic of the global financial system. This is not merely a matter of Tether's reputation, but a significant turning point for the entire stablecoin industry, moving from partial compliance to full auditing.
I. Tether's Redemption: From Trust Deficit to Transparency
Looking back at Tether's growth trajectory, 2021 can be considered a true watershed year. That year, Tether suffered two major regulatory penalties in succession, paying a total of nearly $60 million in fines. These lessons became the starting point for its subsequent systematic compliance efforts.
In February 2021, an investigation by the New York Attorney General's Office (NYAG) uncovered Tether's biggest original sin: for a period of time, the company did not have sufficient reserves to support all USDT in circulation, and even misappropriated $900 million in reserves to cover losses at its affiliated exchange, Bitfinex. Ultimately, Tether paid a $18.5 million fine to settle the matter and pledged to submit quarterly reports disclosing the composition of its reserve assets.
In October of the same year, the U.S. Commodity Futures Trading Commission (CFTC) again intervened, accusing Tether of misleading investors between 2016 and 2019—the statement that "every USDT is backed by $1" was proven inaccurate. Tether paid a further $41 million fine for this.
While these two penalties were costly, they forced Tether to begin building a compliant institutional framework. Even so, doubts about its reserves have never subsided, and labels like "paper tiger" and "time bomb" continue to haunt it.
Under regulatory pressure, Tether began issuing quarterly attestations in an attempt to regain trust. However, these reports, issued by institutions such as Moore Cayman in the Cayman Islands, are essentially just snapshots and fall far short of a true comprehensive audit, thus their credibility remains limited.
This semi-transparent state puts Tether in an awkward position: on the one hand, it does disclose the composition of its reserves, proving that its assets exceed its liabilities; on the other hand, the market has always had doubts about the depth and reliability of such reports.
Tether's decision to commission a comprehensive audit by the Big Four accounting firms is significant beyond a typical financial audit. This audit covers an extremely complex combination of digital assets, traditional reserves, and tokenized liabilities, and its scale is exceptionally large, rarely seen globally except by a few sovereign institutions.
For Tether, which has long faced skepticism, this is nothing short of a rite of passage. With the backing of the Big Four accounting firms, USDT's legitimacy as a digital dollar is no longer just talk. For institutions like Wall Street, large pension funds, and sovereign wealth funds waiting to enter the market, seeing the audit reports from the Big Four will give them greater confidence in including USDT in their asset allocations. This will not only bring more capital inflows to Tether but will also drive the further maturation of the entire digital asset market.
As Tether CEO Paolo Ardoino stated, "Trust is built on an institution's willingness to undergo comprehensive scrutiny. This audit is part of our years-long effort to strengthen the system, aiming to enable Tether to meet the highest standards in the global financial sector."
II. Industry consolidation accelerates, Tether solidifies its position as a "digital central bank".
In the past, Circle has maintained a moral high ground in the stablecoin market by relying on its image of "compliance and transparency." Its emphasis on US regulatory compliance and the advantages of Deloitte's auditing often put Tether in a passive and defensive position in the competition.
However, Tether's signing of agreements with the Big Four accounting firms is tantamount to launching a direct attack in the area where its competitors excel, directly shaking USDC's core competitive advantage built up over many years. Once the audit is completed, USDT will no longer have a weakness in transparency; on the contrary, it may leverage its massive scale advantage to further widen the gap with its competitors.
Data shows that USDT's market capitalization has exceeded $184 billion, with over 550 million users worldwide. This scale advantage, after undergoing audits by the Big Four accounting firms, is likely to translate into a stronger compliance advantage, creating a situation where the strong get stronger. In contrast, USDC's market capitalization is approximately $78.7 billion; although it started its compliance efforts earlier, it has been far surpassed in scale.
Perhaps influenced by Tether's acceptance of audits by the Big Four accounting firms, Circle's stock price fell from $126 to below $100 on the evening of March 24. It is currently trading at $101, a maximum drop of 20% in 24 hours.
Tether's ambitions clearly extend beyond the cryptocurrency space. In fact, Tether is already one of the major holders of US Treasury bonds, ranking among the top 20, and its influence has long extended to the sovereign debt market, making its role in the traditional financial system increasingly important.
From a geopolitical perspective, for emerging market countries experiencing hyperinflation or financial blockade, such as Turkey, Argentina, and Nigeria, a USDT audited by the Big Four might be more trustworthy than the local banking system, becoming a de facto digital dollar tool.
This expansion of influence has transformed Tether from a simple digital currency issuer into a critical infrastructure within the global financial system. As the company states, Tether is "setting a benchmark for responsible, large-scale digital asset infrastructure."
Tether's Multi-Dimensional Compliance Strategy
In preparation for a Big Four audit, Tether made a key personnel change in early 2025, appointing Simon McWilliams as Chief Financial Officer (CFO). His addition helped Tether establish an internal financial structure that met the standards of top auditing firms, ensuring the company had the institutional foundation to accept a full audit.
When discussing the audit, McWilliams stated, "We selected this Big Four accounting firm through a competitive process because the company is already operating according to Big Four audit standards, and the audit will be completed smoothly." This statement reveals Tether's confidence in passing the audit and also indicates that internal preparations were already in place.
The most strategic step in Tether's compliance strategy was the launch of USAT, a compliant stablecoin specifically for the US market, achieving full alignment with the US regulatory framework.
In September 2025, Tether officially launched USAT, its first fully regulated, dollar-backed stablecoin. USAT was designed to meet the stringent requirements of the Genius Act, which was signed into law by the US President in 2025 and established a federal regulatory framework for stablecoin issuance.
The Genius Act sets stringent standards for stablecoin issuers: 100% reserve backing, annual independent audits, anti-money laundering compliance, and tiered regulatory requirements. USAT was built to meet these requirements from its inception—appointing Bo Hines, former executive director of the White House Cryptocurrency Council, as CEO, issuing the cryptocurrency through Anchorage Digital, the first federally chartered crypto bank in the United States, and with Wall Street giant Cantor Fitzgerald serving as the reserve custodian.
It's worth noting that USAT passed Deloitte's audit just one month after its launch. Currently, USAT has a market capitalization of approximately $27 million, far less than USDT's $184 billion, but it represents the highest standard Tether can achieve in terms of compliance.
This dual-track arrangement reflects Tether's strategic deployment: USDT continues to serve global markets, especially emerging markets and regions with relatively relaxed regulations; while USAT serves as a compliant digital dollar for US institutions and regulated entities. In this way, Tether can flexibly respond to different regulatory environments, maintaining its global influence while meeting the stringent requirements of the US market.
Beyond financial compliance, Tether has also transformed its role in law enforcement cooperation. According to Tether, it has assisted law enforcement agencies in 62 countries and regions worldwide in handling over 1,800 cases, freezing USDT worth $3.4 billion related to illicit activities. According to a report by blockchain analytics firm Elliptic, by the end of 2025, Tether and Circle had blocked approximately 5,700 wallets, involving assets worth about $2.5 billion, three-quarters of which were USDT.
Tether CEO Paolo Ardoino stated, "Law enforcement agencies contact us, provide relevant information, and we take action in accordance with the laws of the relevant countries after verification. We follow this process when cooperating with agencies such as the U.S. Department of Justice and the FBI."
This law enforcement cooperation has not only improved Tether's regulatory image but also provided strong support for its compliant operations globally. By transforming from a passive "regulatory target" to a proactive "law enforcement partner," Tether has successfully repositioned itself as a responsible participant in the global financial system.
Conclusion: The era of comprehensive auditing of stablecoins has only just begun.
Tether's signing with the Big Four is not just a self-redemption, but also the true beginning of an industry reshuffle.
With the deep involvement of the Big Four accounting firms, stablecoins are approaching the transparency and institutionalization levels of traditional finance. As comprehensive audits become the industry standard, competition in the stablecoin market will no longer be limited to who is more transparent, but will shift to who can provide more value within a compliant framework.
For Tether, this long-awaited coming-of-age ceremony is both an end and a beginning. It marks Tether's transition from controversy to acceptance and the start of its new journey as a global digital financial infrastructure. For the entire digital asset industry, a more mature, transparent, and institutionalized era has begun.
