Stablecoin issuer, Tether plans $20 billion raise on record $500 billion valuation

Tether Holdings SA, the world’s largest stablecoin issuer, is seeking a valuation of around $500 billion in a new fundraising round. The company is in early talks to raise $20 billion through a private equity placement, according to Bloomberg.

If successful, the deal would make Tether one of the world’s most valuable private companies, rivalling the likes of SpaceX, ByteDance, and other high-profile tech giants. It would also mark a watershed moment for the crypto sector, where, for years, stablecoin issuers have traditionally operated outside mainstream finance.

The proposed round would involve the sale of roughly 3% of Tether’s equity, with new shares being issued rather than existing investors cashing out. 

Investment bank Cantor Fitzgerald has reportedly been tapped as the lead adviser for the deal, underscoring the scale of ambition behind the fundraising.

Reports indicate that negotiations are ongoing. The final valuation could shift depending on investor appetite, stake size, and regulatory scrutiny. Still, the numbers reflect its confidence in its financial performance and dominant position in the fast-evolving digital asset ecosystem.

Tether’s $500b valuation: A high-stakes play for the stablecoin king

Tether’s stablecoin, USDT, has long been the backbone of crypto trading.

Pegged one-to-one to the U.S. dollar, it acts as a safe harbour for traders moving funds between volatile digital assets. As of this month, USDT has a market capitalisation of around $173 billion, more than triple that of its closest rival, Circle’s USDC.

That dominance translates directly into profit. Tether booked a staggering $4.9 billion in net profit during the second quarter of 2025. 

The company’s reserves are equally robust, with about $162.5 billion in assets against liabilities of $157.1 billion, according to figures cited in recent reports.

Such profitability is largely driven by Tether’s holdings of U.S. Treasuries and other highly liquid assets. With global interest rates spiking, the company’s yield from reserves has soared, providing a windfall few in the crypto space can match.

Tether’s ambitious $500 billion valuation quest is beyond funding, but it is a bold statement that it sees itself not just as a crypto utility but as a financial institution in its own right. If it secures backing from major institutional investors, it could reset expectations for the value of stablecoin providers worldwide.

Yet the move also raises questions about sustainability. Can a company whose core product is pegged to the dollar and whose revenues rely heavily on interest income justify a half-trillion-dollar price tag?

In recent months, Tether has taken steps to diversify and deepen its footprint. It has announced plans to launch a U.S.-focused stablecoin called USAT, aimed at addressing regulatory expectations in North America.

It has also bolstered its leadership team. Notably, Tether hired Bo Hines, a former White House crypto policy official, as a strategic adviser. The move signals a shift toward greater political engagement as the company braces for heightened oversight.

CEO Paolo Ardoino has been keen to stress that any fundraising would involve a carefully selected group of investors rather than a broad syndicate. 

In comments made this week, he framed the raise as part of Tether’s effort to align with “high-profile, strategic partners” who can support its long-term vision.

That vision appears to be about more than maintaining its stablecoin monopoly. Tether has invested in renewable energy, digital payments infrastructure, and emerging-market adoption of blockchain technology. 

A larger war chest would allow it to expand on these fronts while cementing its global influence.

Meanwhile, this is a developing story. As details emerge, we will update you on who the investors are, how much the stake is, and how Tether plans to deploy the funds.