KPMG has issued an unqualified audit opinion on the financial statements of TG Commodities, the issuer of Tether Gold (XAUT), for the year ended December 31, 2025. The audit reported that TG Commodities held 520,089.350 troy ounces of physical gold, valued at $2.246 billion, fully backing the 520,089.300 XAUT tokens in issue, according to Tether.
As part of the audit process, KPMG representatives physically inspected and counted the gold bars held in vaults in Switzerland. This direct verification method, rather than relying solely on custodian confirmations, underscores the thoroughness of the audit. Each XAUT token represents an ownership interest in specific gold bars.
This audit marks a significant step in Tether’s broader strategy to enhance transparency across its stablecoin offerings. It follows a similar clean opinion issued by KPMG in August for Tether International, the issuer of the flagship USDT stablecoin. Historically, Tether faced scrutiny for relying on quarterly attestations, which provide a snapshot of reserves at a specific point in time, rather than comprehensive audits. The company has been progressively working towards full audits for its operations.
In parallel, Tether’s latest attestation for USDT, prepared by BDO for the period ending September 30, reported total reserve assets of $191.5 billion against liabilities of $183.5 billion, resulting in an excess reserve buffer of nearly $8 billion, according to the report. Tether also reported a net operating profit of $1.5 billion for the third quarter.
Tether CEO Paolo Ardoino expressed optimism about Tether Gold’s market potential, stating that XAUT is on track to become a significant competitor to the gold ETF market, said Tether CEO Paolo Ardoino. Chief Financial Officer Simon McWilliams noted that these audit milestones contribute to the broader progress towards comprehensive audits across Tether’s ecosystem, said chief financial officer Simon McWilliams.
Why This Matters
The materials describe a narrow update: KPMG issued an unqualified opinion on the financial statements of TG Commodities, the issuer of Tether Gold (XAUT), for the year ended December 31, 2025. An unqualified, or “clean,” opinion means the auditor found that the statements fairly present the company’s financial position, without reservations.
Broader Context
Source materials place the factual news in this context: Tether’s gold-backed stablecoin, Tether Gold (XAUT), has completed its first full audit by KPMG, which found the token fully backed by physical gold, the company announced on Thursday.
