Tether Holdings SA, the company behind the world’s largest stablecoin, USDT, is reportedly in early-stage discussions with investors to secure a massive capital raise that could propel its valuation to $500 billion, thereby placing it among the most valuable private companies globally. The move signals Tether’s aggressive expansion beyond its stablecoin dominance and into new sectors, challenging tech titans like OpenAI and SpaceX.
According to sources familiar with the discussions, the El Salvador-based crypto giant is seeking to raise between $15 billion and $20 billion in exchange for roughly 3 per cent of new equity. If achieved, this valuation would represent a major milestone for a firm operating in the often lightly regulated digital asset space. While sources caution that the final amount and valuation may be adjusted downward as talks progress, the ambitious target highlights Tether CEO Paolo Ardoino’s vision for the company’s future.
Tether evaluating an investment round
In a public statement, Ardoino confirmed that Tether is evaluating an investment round with “high-profile investors” to “maximise the scale” of its strategy across existing and new business lines. These new ventures reportedly include Artificial Intelligence (AI), commodity trading, energy, communications, and media.
Tether’s financial strength provides a strong foundation for this valuation bid. Its flagship product, USDT, commands a market capitalisation exceeding $172 billion, maintaining a dominant share of the global stablecoin market. The company has generated staggering profits, booking $4.9 billion in the second quarter of 2025 alone, primarily through interest income earned on the vast reserves — largely held in US Treasuries — that back its tokens.
This substantial and consistent profitability, which Ardoino recently claimed approaches a 99% margin, makes Tether a unique and highly desirable investment target.
The funding round is being advised by Cantor Fitzgerald, which itself has been reported to hold a stake in Tether. Prospective investors have been granted access to a data room, with expectations that the deal could close by the end of the year. The valuation places Tether in a league far exceeding its closest competitor, Circle Internet Group—issuer of the USDC stablecoin—which was recently valued around $30 billion following its public offering.
Tether wants to launch a US-regulated stablecoin
Tether’s pursuit of capital coincides with its strategic push for greater US regulatory compliance, including the planned launch of a US-regulated stablecoin, USAT, in an environment that has become more receptive to crypto legislation. However, the company’s history of regulatory friction, including a 2021 fine from US regulators over misrepresenting reserves, adds a layer of complexity to the high-stakes fundraising effort.
If successful, the $500 billion valuation would validate the stablecoin model as a financial powerhouse and fundamentally re-rate the worth of global private digital asset companies.
