TL;DR
KPMG has rendered an unqualified audit opinion on TG Commodities’ financial statements for 2025, making XAU₮ Tether’s second stablecoin subject to a Big Four audit. The auditor conducted a thorough physical verification of the gold reserves backing XAU₮, confirming the existence of 520,089.350 fine troy ounces in storage against an outstanding issuance of 520,089.300 tokens. Tether asserts that the gold is safely stored in Switzerland in accordance with London Good Delivery standards, and speculates that XAU₮ could potentially compete with gold ETFs.
KPMG’s Comprehensive Audit Process
KPMG’s audit of TG Commodities, S.A. de C.V. reached beyond mere document reviews; it included a meticulous physical inspection of all gold bars that back XAU₮. On December 31, 2025, KPMG verified 520,089.350 fine troy ounces of gold, valued at approximately $2.246 billion, which corresponds to the total number of tokens issued (520,089.300). This exhaustive examination adds credibility and transparency to the reserve structure of Tether Gold amidst increased scrutiny regarding its backing.
The gold reserves are held in secure vaults in Switzerland, adhering to the London Good Delivery standards. Tether highlights that each XAU₮ token signifies an indivisible ownership share in the underlying gold, allocated amongst specified bars. In addition to the annual audits, TG Commodities also engages a qualified independent third party quarterly to sample and validate a selection of the gold bars against refinery records, further enhancing the verification process associated with its operational model.
The Implications of the Audit
The completion of this audit follows a similar review conducted by KPMG on Tether International, the issuer of USD₮, which also achieved an unqualified opinion in August. Tether’s Chief Financial Officer, Simon McWilliams, noted that the audit initiative commenced with their two most substantial and complex services, USD₮ and XAU₮, asserting that this marks a significant step towards broader audit endeavors. Thus, XAU₮ is now the second offering from Tether to undergo rigorous independent financial evaluation, enhancing the firm’s overall credibility in the market.
Tether’s CEO, Paolo Ardoino, has indicated that XAU₮ might evolve into a competitor to traditional gold ETFs, citing benefits such as blockchain-based settlement, lowered custody costs, and increased transparency as potential differentiators. It is essential to emphasize that such claims regarding future competition with gold investment products stem from Tether’s strategic outlook, rather than from findings established in KPMG’s current audit, which specifically pertains to the 2025 financial statements.
