How do I check a stablecoin's reserves?
Start with the issuer's own transparency page for the latest attestation report, then check the date, the attesting firm, and whether it's an attestation (a point-in-time balance check) or a full audit (which tests controls over time). Tether and Circle both publish these; as of recent reporting neither has completed a full audit, only attestations.
Where to look
Every major issuer publishes a transparency or reserves page: Tether's transparency portal, Circle's reserve reports (with the underlying Treasury fund holdings viewable through BlackRock's disclosures), and similar pages for PYUSD, USDP and others. These typically update monthly or quarterly and break down reserves by asset category.
Attestation vs audit — the distinction that matters most
An attestation is an accounting firm confirming that reported balances existed on a specific date. It says nothing about what happened the day before or the day after, and it does not test internal controls, custody arrangements or whether assets are encumbered. A full audit, the kind applied to public companies, tests systems and controls across an entire period. No major stablecoin issuer currently publishes a full audit of reserves — this remains the industry's single biggest transparency gap.
- Check the report date — a quarter-old attestation tells you nothing about today
- Check the attesting firm's name and whether it's a recognised auditor
- Check whether it's called an 'attestation' or an 'audit' — the wording is precise and load-bearing
- Check the asset breakdown, not just the total — a Treasury-heavy reserve behaves differently from one with meaningful loans or crypto
Reading the breakdown critically
Look specifically for what fraction sits in cash and short-dated government securities versus anything less liquid — corporate bonds, secured loans, precious metals or crypto assets. The liquid portion tells you how quickly redemptions can be honoured; the illiquid tail tells you what happens under stress. A reserve that is 95%+ T-bills and cash is structurally safer than one with a meaningful loan book, regardless of the total dollar figure.
Frequently asked
- Is an attestation the same as an audit?
- No. An attestation confirms a balance at one point in time; an audit tests controls and records across a full period. No major issuer has published a full reserve audit to date.
- How often are reserves reported?
- Varies by issuer — Circle reports monthly, Tether quarterly. Faster reporting reduces the window in which reserves could change unreported, but doesn't eliminate it.
- What's the biggest red flag in a reserve report?
- A large or growing allocation to illiquid or related-party assets — secured loans to affiliates, for example — that can't be quickly verified or liquidated at face value.
- Can I verify reserves myself on-chain?
- Partially, for on-chain-native collateral like DAI's crypto vaults, which are fully visible. Off-chain assets like Treasuries and bank deposits cannot be independently verified on-chain and require trusting the attestation.