Tether seeks $15–$20B for 3% stake, targeting $500B valuation amid profit surge, regulatory shifts, and transparency concerns.
Tether, the issuer of the USDT stablecoin, is reported to be seeking between $15 billion and $20 billion in fresh capital. The deal would entail the sale of roughly 3% of its equity, which means a possible valuation of almost $500 billion. If completed, this fundraising would put the company in the list of the most valuable private companies in the world.
Tether Boasts $4.9B in Q2 Profits Amidst Limited Transparency
According to Bloomberg, the discussions are still in their early stages and the final terms may change. Cantor Fitzgerald is taking the lead as adviser in the process. Investors who were given data room access have been reviewing financial and policy details. The deal could be closed by the end of the year, depending on allocations and investor commitment.
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The fundraising move comes after a strong financial performance earlier in 2025. Tether recorded profits of $4.9 billion in the second quarter alone. Chief executive Paolo Ardoino has boasted about profit margins of nearly 99 percent. While such results have drawn attention, they do not face the same reporting requirements as those required of public companies, leaving investors to weigh the risks of governance and policy carefully.
At the same time, the company is seeking new regulatory opportunities in the United States. Earlier this month, Tether announced USA$ (or USA₮) – a dollar-backed token aimed at providing more strength to the US dollar in global digital markets. The initiative comes as conditions in Washington are changing, with the GENIUS Act set to expand the role of stablecoins and possibly enable banks, card networks and technology firms to issue tokens of their own.
To help with this effort, Tether recently hired Bo Hines, a former White House crypto official, to lead the project. The move is a signal of a new effort to re-enter the US market, after years of shying away from direct exposure. The company had previously come under scrutiny from regulators, and in 2021, it had to pay a $41 million fine to settle allegations of reserve disclosures.
Tether’s $120B Circulating Supply Underscores Global Reach
Analysts view the fundraising as a means of consolidating Tether’s position as the dominant player in the stablecoin space, ahead of the possibility of future competition. The firm currently issues the world’s largest stablecoin, and the currency circulates by more than $120 billion. Its scale has given it a central role in global digital finance,but it is also facing questions around transparency, oversight and regulatory alignment.
If investors come to the rescue for the private placement, Tether might achieve one of the largest capital raises ever witnessed in the crypto industry. The valuation goal of $500 billion would put the firm in the same league as some of the largest technology players in the world. Yet, a lot depends upon prospective investors striking a balance between the firm’s swift growth in profits and potential regulatory risks and governance challenges.
The result of this process may also determine the broader stablecoin industry. A successful raise could help spur more investment throughout the digital asset infrastructure. Conversely, delays or scaled-back commitments could underscore investor caution with respect to governance practices in the industry. Either way, the deal highlights the growing importance of stablecoins in the developing financial system.
