Tether Holdings is in talks with investors to raise as much as $20b, a deal that could value the stablecoin issuer near $500b and place it among the world’s most valuable private companies.
The firm is seeking between $15b and $20b through a private placement for about a 3% stake, Bloomberg reported Tuesday.
The transaction would reportedly involve new equity, not secondary sales by existing backers. Cantor Fitzgerald is acting as lead adviser on the process.
A valuation near half a trillion dollars would place Tether alongside companies such as OpenAI and SpaceX, an extraordinary mark for a lightly regulated crypto business, even as rivals expand and lower US interest rates threaten its windfall earnings. Circle, the closest public peer in stablecoins, was valued near $30b on Tuesday afternoon.
CEO Paolo Ardoino confirmed via X that the company is evaluating a raise from a selected group of “high-profile key investors.”
Tether Monetizes Reserves While Maintaining Market Lead In Dollar-Pegged Tokens
Tether issues USDT, the largest dollar-pegged token, with a market value around $172b. USDC from Circle ranks second at about $74b. The company earns yield by parking reserves in cash like assets, including US Treasuries.
Tether reported $4.9b in profit for the second quarter in July. Chief executive Paolo Ardoino has said profit margins are about 99%. These figures are not subject to the reporting standards required of public companies.
Prospective investors have been granted data room access in recent weeks to assess the deal. Bloomberg reported the fundraising plans are expected to close by year end, depending on final terms and allocations.
Data Room Opens As Investors Weigh Governance, Policy Risks And Growth Plan
The fundraise comes as Tether lays groundwork to return to the US. The company has outlined a plan for a US-regulated stablecoin and appointed Bo Hines, a former White House crypto official, to lead the effort.
Earlier this month, Tether announced USA₮, a dollar backed token intended to strengthen the role of the US dollar in digital markets. The push follows a shift in the US policy climate, with the GENIUS Act expected to expand the role of stablecoins and potentially allow banks, card networks and technology firms to issue their own tokens.
Tether has a history of run-ins with US regulators. In 2021, it paid a $41m fine to settle allegations that it misrepresented reserves. The firm had largely stayed out of the US before a recent change in tone toward crypto policy.
A successful raise would give Tether deep capital to defend market share and invest across infrastructure, compliance and product. It would also test investor appetite for private crypto champions at a time when rates are easing and yield on reserves may moderate, a shift that could weigh on future earnings.
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