Tether Targets $500B Valuation With $20B Raise as Stablecoin Dominance Grows
Tether Holdings, the issuer of the world’s largest stablecoin USDT, is in talks to raise between $15 billion and $20 billionin a deal that could value the company at around $500 billion, according to people familiar with the matter.
The fundraising, which would involve tradeing about 3% of Tether’s equity, is being arranged with Cantor Fitzgerald as lead adviser. Negotiations are ongoing, and the final valuation could still change, the .
If completed, the round would rank among the largest private financings in the history of the digital assets sector, putting Tether on par with some of the world’s most valuable private companies.
A valuation at that level would place the crypto firm alongside artificial intelligence leader OpenAI and SpaceX, Elon Musk’s space exploration company.
Tether’s stablecoin USDT has a circulating supply of more than $173 billion, making it a central pillar of global crypto trading and liquidity. The company reported over $13 billion in profit last year, driven largely by returns from U.S. Treasuries and other reserve assets.
Neither Tether nor Cantor Fitzgerald has publicly commented on the fundraising discussions.
The planned raise comes as the company pushes to expand its footprint in the United States. Earlier this year, it .
Tether has faced longstanding questions over the transparency of its reserves and remains under close regulatory scrutiny. Its latest move, however, appears aimed at aligning with regulators by developing a stablecoin designed to comply with the GENIUS Act in the United States.
A Move to Expand Tether’s Market Dominance
Tether continues to dominate the stablecoin market, accounting for 58.69% of the total $294.76 billion in circulation, according to data from DeFiLlama.
A fundraising round of this scale is expected to draw further attention from policymakers monitoring the stablecoin market. It would also reinforce Tether’s standing as competitors viewk to expand their own reach.
One key rival, Circle, the issuer of USDC, share. That listing placed Circle among the few crypto firms to go public in the United States.
Circle’s USDC utility has also grown on-chain, with its most chain, a network known for the highest trading volume in the market—
