Tether, the entity behind the world’s largest stablecoin, is reportedly in talks to raise $20 billion at a $500 billion valuation, CEO Paolo Ardoino has confirmed. The deal could make Tether one of the world’s most valuable companies, alongside OpenAI and Elon Musk’s SpaceX.
The company will look to raise the funds through a private placement, in exchange for a roughly 3% stake.
Tether Evaluating Major Fundraising Round
Tether CEO Paolo Ardoino has confirmed that the company is in discussions with investors to raise as much as $20 billion in a fundraising round that would value the company at around $500 billion. If the deal is successful, it could propel the USDT issuer alongside OpenAI and SpaceX as one of the world’s most valuable companies. According to sources, the company is offering a 3% stake through a private placement. Cantor Fitzgerald will act as the lead advisor for the deal.
However, a source involved in the discussions tempered expectations, stating that these were top-end targets, and eventual numbers could be significantly lower. Ardoino confirmed the fundraising plans on X, stating,
“Tether is evaluating a raise from a selected group of high-profile key investors, to maximize the scale of the Company’s strategy across all existing and new business lines (stablecoins, distribution ubiquity, AI, commodity trading, energy, communications, media) by several orders of magnitude.”
If it goes through, the deal could be an extraordinary achievement for the cryptocurrency industry. Tether’s closest competitor, stablecoin issuer Circle, is valued at around $30 billion.
A Quiet Rise To The Top
While Tether lacks the mainstream profile of companies like OpenAI and SpaceX, it has quietly become one of the world’s most profitable companies. The company posted $4.9 billion in profit during the second quarter alone, bringing its year-to-date total to a staggering $5.7 billion. The stablecoin issuer has maintained its position as the leading stablecoin issuer, as USDT remains the largest dollar-backed stablecoin in circulation, with a market capitalization of over $173 billion. The company currently holds a 56% share of the roughly $307 billion stablecoin market.
Stablecoin Adoption On The Rise
Stablecoin adoption has seen a sharp increase as they offer an efficient and low-cost avenue to move funds. They also help expand financial access and act as an on-ramp to blockchain applications. Recently, the United States passed the GENIUS Act to preserve the US Dollar’s dominance by establishing clear rules and regulations for stablecoin issuers.
Tether, once dismissed and accused of being a criminal’s go-to cryptocurrency, has been planning its US return in recent months. Its US return is driven by President Trump’s pro-crypto policies. The company has also named a new CEO for its US businesses and institutions. The US-based entity will be regulated under the GENIUS Act.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
