SS #126 - Tether Completes First Full Audit

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Tether just crossed a threshold it spent years avoiding, submitting to a full "Big Four" audit instead of the quarterly attestations that left room for doubt, but whether KPMG's actual findings ever see daylight will determine if that milestone changes anything.

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In Today's Edition:

• Headline: Tether Completes First Full Audit

• Quick Bites: Bank of England to Test Stablecoin

• Yield of the Week: eToken Sr's 21.09% APY

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HEADLINE

State of play: Tether says it has finally completed a full "Big Four" financial audit after years of relying on quarterly attestations, with KPMG US issuing an unqualified opinion on its 2025 books.

• KPMG examined Tether's transactions, valuations, counterparties, and ownership records, and physically counted its gold bars.

• The audit found Tether's reserves exceeded liabilities by $6.814B at the end of 2025.

• The milestone comes as USDT's market cap has swelled past $180B and Tether has become a major buyer of US government debt.

What’s Next: Whether Tether releases KPMG's underlying findings, still unconfirmed, will determine if this shifts sentiment or stays a headline.

Why it Matters: An audit tests transactions and evidence, not just a reserve snapshot, a materially higher bar for a stablecoin backing $180B.

Our Take: One audit doesn't retire "Tether FUD." It just raises the cost of the next round of skepticism.

QUICK BITES

• Miden bets on privacy stablecoins with introduction of USDCx.

• Tether says KPMG issued 'clean' opinion in first full audit of it's financials.

• Standard Chartered-backed Anchorpoint begins HKDAP stablecoin rollout.

• Bank of England to test stablecoin, digital currency use in cross-border finance.

YIELD OF THE WEEK

eToken Sr (Ensuro Senior Pool): 21.09% APY

• The pool accepts USDC deposits on Polygon and provides senior tranche exposure to a diversified portfolio of uncorrelated insurance risks across multiple programs and lines of business, with ~$934.1k in SCR and ~$1M in liquidity.

• Capital is primarily deployed into Spot (95.37%, ~$890.8k), with smaller allocations to Cliff Horizon (4.46%) and Bliss (0.14%) risk partners, with 80% of capital withdrawable within three months even under stress scenarios.

• Yield is generated from insurance premiums across diversified risk programs, with losses absorbed first by pure premiums and the junior tranche before reaching senior holders, delivering a 21.09% APY with immediate withdrawal cooldown.

MEV Capital USDC: 12.05% APY

• The vault accepts USDC deposits and provides exposure to liquid collateral markets through automated rebalancing to optimize risk-adjusted returns, with ~$211.79k in total deposits and full liquidity available for withdrawal.

• Capital is almost entirely deployed into reUSD/USDC (~$211.66k, 99.95% allocation, 94.20% utilization), with a negligible position in fxSAVE/USDC.

• Yield is generated from lending demand against reUSD collateral at 12.76% market APY, net of an 8% performance fee and 0% management fee.

3Jane Ecosystem Vault: 10.70% APY

• The vault accepts USDC deposits and exclusively allocates capital to 3Jane ecosystem assets on Morpho, curated by Clearstar, with ~$20.88M in total deposits and ~$2.42M in available liquidity.

• Capital is split between USD3/USDC (~$11.53M, 55.24% at 93.13% utilization) and PT-USD3-17DEC2026/USDC (~$9.34M, 44.76% at 91.31% utilization), with zero idle liquidity.

• Yield is generated from lending demand across 3Jane collateral markets, with a base vault APY of 8.79% boosted by 1.90% in USDC incentives, net of a 15% performance fee and 0% management fee.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.