Tether Holdings, the issuer of the world’s largest stablecoin USDT, is reportedly looking to raise between $15 billion and $20 billion in a private placement, which could elevate the company’s valuation to an astounding $500 billion. This valuation would position Tether among elite companies such as AI powerhouse OpenAI and the aerospace firm SpaceX, both of which have garnered similar assessments.
According to a report from Bloomberg, which cites two unnamed sources, the current discussions surrounding this fundraising effort are in preliminary stages, and the final terms may differ from the initial targets. The potential new funding round aims to represent approximately a 3% stake in the company, although another source indicated that the fundraising goal could ultimately be lower than projected.
This move highlights the growing importance of stablecoins, a trend increasingly supported by a favorable political and regulatory climate in the U.S., especially following the Trump administration’s efforts to legitimize digital assets with legislation like the Genius Act. This act has paved the way for the issuing and trading of stablecoins.
In a recent interview, Tether’s CEO Paolo Ardoino shared plans for a new U.S.-specific stablecoin named USAT, tailored for diverse use cases compared to the existing USDT. Following this, Bo Hines, previously the executive director of the White House’s digital assets working group, was appointed CEO of USAT, emphasizing Tether’s push for innovation in the stablecoin market.
Earlier this year, rival stablecoin issuer Circle made headlines by going public on the New York Stock Exchange, with its stock performance surpassing that of major tech companies such as Meta, Robinhood, and Airbnb. Currently valued over $30 billion, Circle has a significantly smaller market cap than Tether, which stands at approximately $172 billion, as reported by CoinGecko.
In a recent conference in Seoul, Bo Hines stated that Tether currently has no plans to raise additional funds. The forthcoming deal, should it proceed, will involve the issuance of new shares rather than current investors offloading their stakes. Investment bank Cantor Fitzgerald is advising the company on this venture, and interested investors have already begun accessing a data room to evaluate their potential participation in the offering, with expectations of closure by the end of the year.
In its latest financial report, Tether revealed that it issued $20 billion in USDT during the first half of the year alone and achieved a net profit of $5.7 billion in that period, including a remarkable $4.9 billion in profits during the second quarter. The firm’s asset portfolio reportedly includes significant holdings in Bitcoin and gold, further enhancing its financial stability.
