Tether Holdings SA, recognized as the leading issuer of stablecoins globally, is targeting a valuation near $500 billion in an upcoming capital raise. According to Bloomberg, the company is in preliminary discussions to secure $20 billion through a private equity offering.
If completed, this transaction would position Tether among the most valuable private enterprises worldwide, standing alongside industry titans such as SpaceX and ByteDance. This milestone would also signify a pivotal shift for the cryptocurrency industry, where stablecoin issuers have historically remained on the periphery of traditional financial markets.
The fundraising plan involves issuing new shares representing approximately 3% of Tether’s equity, rather than existing shareholders selling their stakes.
Investment bank Cantor Fitzgerald has been appointed as the lead advisor, highlighting the ambitious scale of this capital raise.
Negotiations remain active, with the final valuation subject to change based on investor interest, the size of the equity offered, and regulatory considerations. Nonetheless, these figures underscore Tether’s confidence in its financial strength and its commanding role within the rapidly evolving digital asset landscape.
Tether’s $500 Billion Valuation: A Bold Move by the Stablecoin Leader
USDT, Tether’s flagship stablecoin, has been a cornerstone of cryptocurrency trading for years.
Maintaining a one-to-one peg with the U.S. dollar, it provides traders with a reliable refuge amid the volatility of digital currencies. As of this month, USDT boasts a market cap near $173 billion, surpassing its nearest competitor, Circle’s USDC, by more than threefold.
This market dominance translates into substantial earnings. In Q2 2025 alone, Tether reported an impressive net profit of $4.9 billion.
The company’s balance sheet is equally formidable, holding approximately $162.5 billion in assets against liabilities totaling $157.1 billion, according to recent disclosures.
Tether’s profitability is largely fueled by its portfolio of U.S. Treasury securities and other liquid investments. With global interest rates on the rise, the returns generated from these reserves have surged, delivering exceptional gains rarely seen in the crypto sector.
By pursuing a $500 billion valuation, Tether is signaling its ambition to transcend its role as a mere crypto utility and establish itself as a bona fide financial institution. Securing investment from prominent institutional players could redefine market perceptions of stablecoin companies globally.
However, this aggressive valuation raises important questions about long-term viability. Can a firm whose primary product is dollar-pegged and whose income heavily depends on interest yields justify such a lofty market value?
In response, Tether has been actively diversifying its operations. The company recently announced plans to introduce USAT, a U.S.-centric stablecoin designed to meet regulatory demands in North America.
Additionally, Tether has strengthened its executive team by appointing Bo Hines, a former White House crypto policy advisor, as a strategic consultant. This move reflects a strategic pivot toward enhanced regulatory engagement amid increasing governmental scrutiny.
CEO Paolo Ardoino emphasized that the fundraising will target a select group of strategic investors rather than a broad syndicate.
He described the capital raise as part of Tether’s strategy to partner with “high-profile, strategic allies” capable of supporting its long-term objectives.
Tether’s vision extends beyond maintaining its stablecoin dominance. The company has invested in renewable energy projects, digital payment systems, and blockchain adoption in emerging markets.
With increased capital, Tether aims to accelerate growth in these areas while solidifying its influence on the global stage.
This story is unfolding. We will provide updates on investor identities, stake details, and Tether’s plans for deploying the new funds as more information becomes available.
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