Tether Faces Scrutiny Over $500B Valuation Talk and Delayed Audit Timeline - Crypto Economy

TL;DR:

• Tether seeks to establish a $500 billion valuation in its fundraising round and has yet to confirm an auditor or timeline for 2026.
• The company reported over $10 billion in profit in 2025 with just 300 employees and holds $122 billion in U.S. Treasuries.
• Without a full audit from a Big Four firm, institutions and regulators continue to question its reserves, internal controls, and true exposure.

Tether is going through one of the most expansive moments in its history while simultaneously being pressed with the most uncomfortable questions about its financial architecture. The company behind USDT, the world’s largest stablecoin by circulation, is seeking to close an investment round that would grant it a $500 billion valuation, which would place it among the most valuable private companies on the planet. According to Bloomberg, banks such as Morgan Stanley, BTG Pactual, and First Abu Dhabi Bank are advising the process, though the closing has been delayed by several months relative to the original timeline.

The operational growth is hard to ignore With just 300 employees, Tether reported over $10 billion in profit last year, a figure that possibly makes it the most profitable company per employee in the world. Its reserves exceed $193 billion, of which 63% corresponds to U.S. sovereign debt. That volume positions it as the seventeenth-largest holder of Treasuries globally and the first of a non-sovereign nature — a fact that unsettles segments of the U.S. regulatory establishment.


Tether Struggles Under the Weight of Its Pending Audit

Despite years of promises, Tether has not completed a full audit. BDO issues quarterly attestations on the assets backing USDT, but that mechanism does not equate to a full audit: it does not cover internal controls, asset quality, or valuation methodologies over time. Paolo Ardoino, CEO of the company, confirmed that conversations with Big Four firms are underway and described the process as a “super high priority,” but declined to make concrete commitments regarding timelines or the identity of the auditor. The firm told potential investors it aims to have a full audit completed by the end of 2026.


While attestations confirm declared reserves at a specific point in time under agreed procedures, a full audit applies more rigorous standards to financial statements and controls, generating a materially higher level of certainty for institutions. Until an auditor is appointed and the scope is defined, analysts and regulators will continue to treat valuation and reserve data as provisional.

Democratic Senator Jack Reed has already proposed legislation to require audits for dollar-backed stablecoin issuers operating outside the United States. Arthur Wilmarth, professor emeritus of law at George Washington University, put it plainly: “I’m not sure anyone has an idea of Tether’s total exposure. The important thing is how opaque and hidden much of it is.”