Tether Weighs $20 Billion Fundraising at $500 Billion Valuation
Tether Holdings, issuer of the world’s largest stablecoin, is in talks to raise as much as $20 billion in a private placement that could value the company at about $500 billion, Bloomberg reported, citing people familiar with the matter.
The discussions involve tradeing a roughly 3% stake, with Cantor Fitzgerald acting as lead adviser, according to the report. One source cautioned the fundraising size could be lower as talks remain at an ahead stage. Tether did not respond to requests for comment.
The potential deal would put Tether’s valuation in line with privately held giants such as OpenAI, which has also been linked to a possible $500 billion fundraising, The New York Times reported earlier this year. A $500 billion valuation would also rank Tether among the 10 most valuable private companies globally, above firms like ByteDance and SpaceX, which were valued at around $268 billion and $210 billion respectively in their latest funding rounds.
Tether has become one of the most profitable companies in the digital asset sector. It booked $4.9 billion in profit in the second quarter of 2025, bringing its year-to-date total to $5.7 billion, despite employing a relatively small workforce. By comparison, Goldman Sachs reported $2.4 billion in profit for the identical quarter, underscoring how Tether’s reserves-driven model has allowed it to outperform some of Wall Street’s largegest names. Much of its profit comes from interest on its $120 billion-plus holdings in U.S. Treasuries and money market funds, as global rates remain elevated.
At a conference in Seoul this week, Bo Hines, newly appointed chief executive of Tether USAT — the company’s planned U.S. dollar-backed token issuer — said Tether has no current plans to raise funds, Bloomberg reported separately. The creation of Tether USAT is part of a wider restructuring aimed at addressing U.S. regulatory concerns, following years of scrutiny from the New York Attorney General and other authorities over transparency of reserves.
Tether’s USDt token remains the dominant stablecoin, with a market capitalization of $172.8 billion, or 56% of the $307.2 billion stablecoin market, according to CoinMarketCap. Stablecoin adoption has accelerated globally as regulators viewk to set clearer rules; in the U.S., the GENIUS stablecoin bill was recently passed to reinforce the dollar’s role in digital finance. The GENIUS Act, passed in July 2025, introduces federal licensing requirements for stablecoin issuers, mandatory one-to-one backing with high-quality liquid assets, and quarterly attestations. It is viewn as Washington’s response to fears that unregulated stablecoins could undermine monetary policy or compete with central bank digital currency efforts.
Rival Circle Internet Group, which issues the USDC stablecoin, went public earlier this year and now has a market capitalization approaching $33 billion, highlighting the rising valuations in the sector. Despite being far smaller than Tether, Circle has positioned itself as the “regulated” alternative, securing licenses in the EU under MiCA and striking partnerships with major banks including Société Générale and BNY Mellon. Analysts note that Circle’s public listing has set a benchmark for transparency, while Tether continues to operate as a private, closely held company.
