Tether Holdings, the issuer of the world’s most widely used stablecoin, is reportedly in negotiations with investors to secure funding of up to US$20 billion. This potential deal could position the company among the top private firms globally in terms of valuation. Based in El Salvador, Tether is exploring a private placement that would yield between US$15 billion and US$20 billion in exchange for approximately a 3 percent equity stake.
Sources indicate that these figures represent the upper end of their target, warning that the final outcome may fall short of these projections. The discussions are currently in preliminary stages, and specifics of the investment could evolve. The individuals involved in the conversations have requested confidentiality and have not been authorized to disclose information publicly.
If the deal proceeds as planned, it may place Tether’s valuation at around US$500 billion, a figure that would align it with industry giants such as OpenAI and SpaceX. This development underscores a remarkable ascent within the relatively unregulated cryptocurrency sector, even as competition intensifies and the prospect of decreasing U.S. interest rates raises concerns about diminished earnings.
For context, Tether’s primary competitor, Circle Internet Group, which is publicly traded, was valued at approximately US$30 billion earlier this week. The fundraising efforts by Tether are expected to involve the issuance of new equity, rather than existing investors liquidating their holdings.
Cantor Fitzgerald has been designated as the lead advisory firm for this fundraising initiative. The proposed capital influx could significantly alter the landscape of stablecoin issuers and the broader cryptocurrency market.
