How to read a stablecoin attestation report and why it matters

Key takeaways

• Stablecoin attestation reports provide third-party verification that each token is backed by real-world assets like cash and US Treasurys.

• Attestation ≠ audit: Attestations are point-in-time checks, not deep financial audits, so users should still perform broader due diligence.

• Not all tokens are redeemable. Time-locked, test or frozen tokens are excluded from reserve calculations to reflect only actively circulating coins.

• USDC sets an industry benchmark with regular third-party attestations, transparent reserve reporting and compliance with MiCA regulations.

Stablecoins play a crucial role in the digital asset ecosystem, bridging traditional fiat currencies and the decentralized world of cryptocurrencies. 

How can you be confident that each stablecoin is backed by real-world assets? This is where stablecoin attestation reports come in. 

Understanding how to read attestation reports is essential for anyone interacting with stablecoins like USDC (USDC) or Tether USDt (USDT). 

This guide explains everything you need to know about stablecoin attestation reports, how they work and why they matter.

What is a stablecoin attestation report?

A stablecoin attestation report is a formal document issued by an independent third party  —  a certified public accountant (CPA) firm — that verifies whether the stablecoin issuer holds sufficient reserves to back the coins in circulation. 

Unlike full audits, which evaluate broader financial systems and controls, attestations are narrower in scope. They confirm specific facts, like whether reserve balances match circulating supply at a single point in time.

Think of an attestation as a snapshot taken by accountants saying, “Yes, we’ve checked, and the money is there right now.”

It’s not as deep or wide as an audit, but it still builds trust.

For example, if a stablecoin issuer claims that each token is backed 1:1 by US dollars, an attestation report would provide evidence supporting that claim. Stablecoins like USDC regularly publish such reports to prove that their coins are fully backed, helping to build trust in their ecosystem.

Attestation reports are especially critical for investors and institutions that depend on stablecoins for cross-border settlements, collateral in lending protocols and participation in decentralized finance (DeFi) applications. Without confidence in the reserves’ authenticity, the stablecoin system risks collapse, which can impact the broader crypto market.

Purpose of stablecoin attestations: Why transparency matters?

Transparency is essential in the crypto space, especially for stablecoins, which serve as a medium of exchange, a store of value and collateral on DeFi platforms. Attestation reports offer a window into a stablecoin issuer’s reserves and disclosure practices, allowing users, regulators and investors to evaluate whether the issuer is operating responsibly.

Issuers like Circle, the company behind USDC, publish attestation reports to demonstrate compliance with regulatory expectations and assure users that the coins they hold are not only stable in name but also in substance. In doing so, they promote stablecoin investor safety and support market integrity.

This transparency builds the foundation for regulatory trust and helps attract traditional financial institutions into the space. It also aligns with broader industry goals for increasing stablecoin compliance, particularly as governments worldwide explore stablecoin-specific regulations.

Who conducts the attestation?

Stablecoin attestation reports are prepared by independent accounting firms. For instance, Circle’s USDC attestation reports are conducted by Deloitte (as of April 13, 2025), a leading global audit and advisory firm. These firms follow professional standards set by bodies like the AICPA (American Institute of Certified Public Accountants).

Independent attestors are essential because they remove conflicts of interest. Having a third-party review reserves ensures that the information is unbiased, credible and aligned with global assurance standards.

AICPA’s 2025 criteria: Standardizing stablecoin attestations

In response to growing concerns over inconsistent stablecoin disclosures, the AICPA introduced the 2025 Criteria for Stablecoin Reporting, a standardized framework for fiat-pegged, asset-backed tokens. 

These criteria define how stablecoin issuers should present and disclose three key areas: 

1. Redeemable tokens outstanding.

2. The availability and composition of redemption assets.

3. The comparison between the two.

What makes the 2025 Criteria important is its emphasis on transparency and comparability. For example, token issuers must clearly define redeemable versus nonredeemable tokens (such as time-locked or test tokens), identify where and how reserves are held and disclose any material legal or operational risks affecting redemption.

By aligning attestation reports with this framework, accounting firms ensure that evaluations are conducted using…