How Are Fiat Reserves Audited for Centralized Stablecoins?

Fiat reserves for centralized stablecoins are typically audited by independent third-party accounting firms. These firms issue regular attestation reports to confirm that the stablecoin issuer holds sufficient fiat currency or equivalent assets in reserve accounts to back the circulating supply of the stablecoin.

The quality and frequency of these audits are crucial for transparency and user trust.