# How to read a stablecoin reserve report

> A stablecoin reserve report — properly called an attestation — is a point-in-time snapshot by an independent accounting firm confirming that the issuer held enough assets to cover every token in circulation on one specific date. Reading one correctly means understanding what it proves, what it does not prove, and what the reserve composition reveals about stability under stress.

6 min read · Updated 2026-06-09 · Topic: stablecoins

Canonical: https://tempo.dataos.so/articles/how-to-read-stablecoin-reserve-report

Every major fiat-backed stablecoin publishes a reserve report — at minimum, quarterly; in the case of USDC, monthly. These documents underpin the claim that each token is worth a dollar. Yet reserve reports are routinely misread: skimmed for a headline number rather than examined for what they prove, what auditing standards govern them, and what the composition of reserves implies about risk under stress.

This guide walks through a reserve report from first principles.

## What a reserve report is (and is not)

The documents that stablecoin issuers call "reserve reports," "attestations," or "transparency reports" are almost universally **agreed-upon procedures (AUP) attestations** under AICPA standards. That phrase has a precise meaning:

- An independent accounting firm performs specific, pre-agreed procedures — for example, confirming the balance of a bank account on a specific date, or tying reported token supply to blockchain data.
- The firm issues an opinion that the stated figures are consistent with what they observed, **on the date of the snapshot**.
- This is not an audit. The firm has not examined whether the reserves were maintained throughout the period, has not reviewed internal controls, and has not assessed the risk of future shortfalls.

A full financial audit (under GAAS or PCAOB standards) is broader, covers an entire period, and tests controls. No major stablecoin issuer had completed a full audit as of mid-2026, though Tether announced an engagement with a Big Four firm in early 2026.

The distinction matters because an attestation can be accurate and still miss a problem that developed the week after the snapshot date.

## The five things to check in any reserve report

### 1. The claim being tested

The report will state, in formal language, exactly what assertion it is testing. Common formulations:

- "The reserve assets exceeded [token quantity] as of [date]" — a simple sufficiency claim
- "Reserve assets were held in the following categories as of [date]" — a composition claim
- "Tokens in circulation matched the figure reported by the issuer as of [date]" — a liability verification

Read this carefully. Some reports verify only that reported reserves matched reported liabilities, without independently confirming the market value of the assets. Others confirm composition details. Know which claim the firm is actually testing.

### 2. The snapshot date and reporting lag

Every attestation applies to one date. Circle's monthly reports typically cover the last day of the calendar month and are published within a few weeks. Tether's quarterly BDO reports cover a quarter-end date and may be published six or more weeks later. A 45-day lag means the reserve composition verified is already nearly two months old by the time a reader sees it.

The frequency and lag matter in a stress scenario. A quarterly attestation provides far less information about interim reserve management than a monthly one.

### 3. The reserve composition

The headline figure — "reserves equal or exceed tokens in circulation" — is necessary but insufficient. What the reserves are made of determines how quickly they could be liquidated to meet redemptions and how stable their value is.

| Asset type | Liquidity | Value stability | Risk |
|---|---|---|---|
| US Treasury bills (≤90 days) | Very high — can be liquidated in hours | Near-zero price volatility | Minimal credit risk |
| Government money market funds (SEC 2a-7) | High — next-day or same-day redemption | Stable NAV | Very low; fund structure regulated |
| Cash at FDIC-insured banks | Immediate for amounts under FDIC limit | Stable | Custodian risk above FDIC limits |
| Secured loans | Low — fixed terms, may require collateral enforcement | Uncertain | Borrower default risk |
| Corporate bonds | Moderate — dependent on market depth | Price-sensitive | Credit and duration risk |
| Gold | Moderate — commodity markets | Volatile | Price and storage risk |
| Bitcoin or other crypto | Moderate to high in bull markets, lower in stress | Highly volatile | Market risk, correlation with crypto stress |

Circle's USDC reserves are concentrated in the first two rows — the Circle Reserve Fund (BlackRock-managed, SEC-registered 2a-7 fund) and cash. As of the March 2026 attestation, approximately $77 billion in USDC was outstanding, backed primarily by these instruments.

Tether's Q1 2026 attestation (BDO Italy) showed approximately $141 billion in Treasury exposure (direct and indirect) alongside significant non-Treasury holdings including secured loans, gold, Bitcoin, and other investments. The Treasury component is high-quality; the non-Treasury portion introduces more risk and valuation complexity.

### 4. The accounting firm and standards

The credibility of an attestation depends on the firm performing it and the standards applied. BDO and Deloitte are established global accounting firms. Reports from smaller or regional firms deserve more scrutiny. Look for explicit reference to AICPA AT-C Section 215 (agreed-upon procedures) or equivalent international standards (ISAE 3000R).

Note whether the report is signed by a partner of the firm, and whether the firm's independence from the issuer is disclosed.

### 5. What is excluded

Attestations typically do not cover:

- Whether reserves will remain sufficient in the future
- Operational risks, including hacking, key management, or smart contract risk
- Whether the issuer's internal controls over reserve management are adequate
- The legal enforceability of reserve segregation in insolvency
- The risk profile of banking partners holding cash reserves

The SVB event illustrates the last point. USDC's reserves were correctly attested as sufficient. What the attestation could not predict was that a portion of those reserves — $3.3 billion — was held at a bank that would be closed by regulators the following quarter.

## Reading USDC vs USDT reports side by side

| Feature | USDC (Circle / Deloitte) | USDT (Tether / BDO Italy) |
|---|---|---|
| Frequency | Monthly | Quarterly |
| Firm | Deloitte & Touche LLP | BDO Italy |
| Reserve composition | Primarily Treasuries + cash (SEC 2a-7 fund) | Treasuries + secured loans, gold, BTC, other |
| Tokens vs reserves | Near-100%; disclosed in detail | Reported as exceeding liabilities; composition varies |
| Publication lag | ~2-3 weeks after month-end | 4-8 weeks after quarter-end |
| Legal segregation | Explicitly disclosed | Disclosed; offshore structure adds complexity |

## The GENIUS Act standard

The US GENIUS Act (signed July 18, 2025) set a baseline for what compliant payment stablecoin attestations must contain going forward: monthly public disclosure of reserve composition, 1:1 backing with liquid assets (Treasuries and cash), and independent verification. This codified the higher standard that Circle had already adopted and required the rest of the market to move toward it.

For users evaluating coins issued before or outside the US framework, the GENIUS Act standard provides a useful benchmark: monthly, by a recognised firm, with composition detail, from a liquid-only reserve.

## A practical checklist

Before relying on a reserve report, confirm:

- [ ] It covers the specific date you care about (not a date weeks before your exposure)
- [ ] It was prepared by an independent recognised accounting firm
- [ ] It identifies the specific assets in the reserve, not just a total
- [ ] The non-cash, non-Treasury portion of reserves is disclosed and within acceptable parameters for your risk tolerance
- [ ] The issuer publishes reports at least quarterly (monthly is preferable)
- [ ] The report's scope is clear about what procedures were performed and what was not examined

For the full picture of issuer-specific risks, combine reserve reports with [S&P's Stablecoin Stability Assessments](/articles/sp-stablecoin-stability-ratings) and issuer legal disclosures on reserve segregation and insolvency priority. See also [stablecoin counterparty risk](/articles/stablecoin-counterparty-risk) for the broader exposure map.

## FAQ

**What is the difference between an attestation and a full audit?**

An attestation is a point-in-time agreed-upon procedures engagement: an accounting firm confirms that, on one specific date, the reserves matched the reported figures. A full audit examines internal controls, financial records, and activities across an entire reporting period. No major stablecoin issuer has completed a full GAAS audit as of mid-2026, though Tether has announced one is in progress. Attestations are useful but narrower — they do not assess what happened between reporting dates.

**Where do I find USDC and USDT reserve reports?**

Circle publishes monthly USDC attestations at circle.com/transparency, conducted by Deloitte & Touche. Tether publishes quarterly attestations at tether.to/en/transparency/, conducted by BDO Italy. Both follow AICPA agreed-upon-procedures standards.

**What reserve composition is safest?**

The safest reserve composition is short-duration US Treasury bills and cash at FDIC-insured, regulated banks — assets that can be liquidated quickly and whose value is stable. Reserves that include secured loans, corporate bonds, gold, or cryptocurrency carry more credit risk and valuation uncertainty and may be harder to liquidate rapidly during a redemption wave.

**Can a stablecoin pass an attestation and still fail?**

Yes. An attestation only verifies a single date. Reserves could be fully backed on the attestation date and impaired a week later. The SVB crisis in March 2023 is an example: USDC's reserves were correctly attested, but a portion was held at a bank that subsequently failed, causing a temporary depeg before federal insurance was confirmed.

## Sources

1. [Circle — Transparency & Stability (USDC attestation reports)](https://www.circle.com/transparency)
2. [Tether — Transparency & Reserve Reports](https://tether.to/en/transparency/)
3. [CoinTelegraph — How to read a stablecoin attestation report](https://cointelegraph.com/news/how-to-read-a-stablecoin-attestation-report)
4. [MetaMask — Stablecoin reserves: evaluating USDT, USDC, DAI](https://metamask.io/news/how-stablecoin-reserves-work-and-how-to-evaluate-them)
5. [Federal Reserve — In the Shadow of Bank Runs: SVB and stablecoins (Dec 2025)](https://www.federalreserve.gov/econres/notes/feds-notes/in-the-shadow-of-bank-run-lessons-from-the-silicon-valley-bank-failure-and-its-impact-on-stablecoins-20251217.html)

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