Tether Holdings SA, the issuer of the world’s largest stablecoin, Tether (USDT-USD), is reportedly seeking an eye-popping valuation of nearly $500 billion in its latest funding round. According to a Bloomberg report, Tether is aiming to raise between $15 billion and $20 billion in exchange for a 3% equity stake.
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CEO Paolo Ardoino confirmed that the large capital raise would be structured as a new equity issue, rather than involving existing investors selling their shares. In a post on X, Ardoino stated that the private placement was being sought from a “selected group of high-profile key investors.”
Tether’s Valuation Is Growing Rapidly
Tether’s valuation is growing rapidly, placing the El Salvador-based firm in the ranks of some of the most valuable private companies globally. If completed, the new funding round would put Tether’s value on par with artificial intelligence (AI) giant OpenAI and Elon Musk’s SpaceX. However, sources noted that talks are in very early stages, and the final details could be materially different.
Ardoino stated that the funds would significantly expand Tether’s strategy, strengthening both current and new business areas. These include stablecoins, global distribution, AI, commodity trading, energy, communications, and media.
Tether Seeks Entry into the U.S. Market
Tether’s flagship USDT stablecoin, which is pegged against the U.S. dollar, currently has a market capitalization of $173 billion. Its closest competitor, Circle’s (CRCL) USDC, holds a market cap of $74 billion. Circle had a blockbuster U.S. IPO this year and has a current market cap of $30 billion.
Tether is now aiming to strengthen its presence in the American market, considering President Donald Trump’s pro-crypto stance. The company recently announced plans to launch a U.S.-based stablecoin USAT, specifically for American residents. USAT is designed to comply with the U.S.’ GENIUS Act, the regulatory framework for digital assets in the country.
Tether has confirmed that its existing stablecoin USDT will also comply with the Act while remaining a foreign stablecoin. In August, Tether announced that former White House official Bo Hines has been appointed as CEO of its new U.S. stablecoin venture.
USDT Market Performance
Over the past three months, USDT has remained almost unchanged in price, continuing to deliver the stability that attracts many investors to these cryptocurrencies.
