Crypto giant Tether is currently in negotiations to secure up to $20 billion in a private placement, a move that could catapult the El Salvador-based firm to a valuation of approximately $500 billion, according to a report from Bloomberg News. The fundraising initiative aims to raise between $15 billion and $20 billion in exchange for roughly a 3% stake in the company, although these figures represent ambitious targets, and the final amounts may vary based on the equity offered.
Paolo Ardoino, Tether’s chief executive, confirmed via a post on X that the firm is considering raising funds from a select group of prominent investors but refrained from providing additional specifics about the potential deal.
Tether has maintained a strong foothold in the stablecoin market, with its USDT stablecoin, pegged to the U.S. dollar, boasting a market capitalization of around $173 billion, according to CoinGecko data. The company’s stablecoins are designed to mitigate price volatility, facilitating smoother transactions between various digital assets and traditional currencies.
In efforts to expand its presence in the U.S. market, Tether recently hired former White House crypto policy executive Bo Hines as a strategic adviser. This move aligns with a favorable regulatory environment for crypto under the previous Trump administration, which has benefited many digital currency firms.
Adding to its ambitious expansion plans, Tether announced the upcoming launch of a U.S.-based stablecoin, named USAT, specifically tailored for American residents. Meanwhile, competition in the sector continues to grow, highlighted by rival stablecoin firm Circle’s successful public offering in June.
