Tether Seeks Up To $20 Billion Funding At $500 Billion Valuation Rivalling OpenAI And SpaceX

Tether is in talks with investors to raise $15 billion to $20 billion in new funding that could value the largest stablecoin issuer at around $500 billion, putting it in the same league as titans like OpenAI and SpaceX.

The private placement would involve issuing new equity, with Cantor Fitzgerald advising on the process, and give investors a stake of about 3% in the company, Bloomberg reported, citing two people familiar with the matter.

They cautioned that the final raise could be significantly smaller as talks are in the early stages.

If successful, the deal would rank among the largest private financings ever, and highlights the company’s bid to dominate stablecoins even as rivals such as Circle expand.

“Tether is evaluating a raise from a selected group of high-profile key investors, to maximize the scale of the Company’s strategy across all existing and new business lines (stablecoins, distribution ubiquity, AI, commodity trading, energy, communications, media) by several orders of magnitude,” said CEO Paolo Ardonino in a post on X.

The company has yet to comment on the specifics of its fundraising plan. Earlier, at a conference in Seoul, the head of Tether’s American division, Bo Hines, said it does not plan to raise additional capital. 

Tether’s USDT has a market cap of $173.08 billion, making it the world’s largest stablecoin, according to CoinMarketCap data. 

If the fundraising is achieved, it would mark a striking milestone for a business that operates with limited regulatory oversight.

Publicly traded rival Circle Internet Group Inc. is currently valued at $30.1 billion.

Tether Prepares To Re-Enter US Market

The Bloomberg report comes after Tether recently reported $4.9 billion in net profit in the second quarter. It said at the time that it held over $162.5 billion in reserves against $157.1 billion in liabilities. Its reserves include about $8.9 billion in BTC.

Tether is preparing to re-enter the US market, drawn by President Donald Trump’s pro-crypto stance. It recently unveiled a plan for a US-regulated stablecoin and appointed Bo Hines, a former White House crypto official, to lead it.

Ardonino had earlier announced Tether’s intention to obtain foreign issuer status for stablecoins under requirements laid down by the GENIUS Act, which provides a clear regulatory framework for them. He estimated the implementation of these plans would take three years.

Tether had been notably absent from the US before Trump’s second term, after clashing with regulators. In 2021, the company paid a $41 million fine to settle allegations it had misrepresented its reserves.

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