London, UK | September 24, 2025
Tether Explores Half-Trillion Dollar Valuation in Private Funding Round
Tether, the issuer of the world’s largest stablecoin, USDT, is reportedly in preliminary discussions with high-profile investors to raise new capital in a move that could value the company at an astronomical $500 billion. The potential fundraising would make Tether one of the world’s most valuable private companies, placing it in the same league as tech giants like OpenAI and SpaceX, despite being a lightly regulated crypto-native business. While an official from the company has denied any imminent fundraising plans, sources familiar with the matter say talks are underway.
Headline Points
* Tether is reportedly seeking to raise between $15 billion and $20 billion by selling a 3% stake in the company.
* The valuation would put Tether in the same category as the world’s most valuable private companies.
* The company’s strategic move is reportedly aimed at expanding beyond stablecoins into new business lines, including artificial intelligence (AI), energy, commodity trading, and media.
* The fundraising push comes as Tether’s rival, Circle, which issues the USDC stablecoin, has gone public with a valuation of $30 billion.
* Tether’s profitability, driven by interest income from its massive reserves, has been a key factor in its market dominance and high valuation.
The Ambitious Capital Raise
According to reports from multiple sources, Tether is in talks with a select group of investors for a private placement, with Cantor Fitzgerald acting as a lead adviser on the deal. The proposed raise would involve the sale of new shares, giving investors a stake of approximately 3% in exchange for a capital injection of up to $20 billion. The transaction is still in its early stages, and the final valuation could be lower, depending on the terms and investor appetite.
If successful, the deal would be a landmark moment for the cryptocurrency industry. The proposed valuation of $500 billion dwarfs that of many publicly traded companies and its closest competitor, Circle. This high-stakes fundraising effort is seen as a way for Tether to solidify its market position and diversify its business. The company’s CEO, Paolo Ardoino, has hinted on social media that the funds would be used to “scale the company’s strategy across all existing and new business lines,” which he listed as “stablecoins, distribution ubiquity, AI, commodity trading, energy, communications, and media.”
Profitability and Market Dominance
Tether’s extraordinary valuation is underpinned by its staggering profitability. The company has a $172.8 billion market capitalization and controls over half of the global stablecoin market. Its business model, which involves earning interest on its massive reserves, has proven to be incredibly lucrative. In the second quarter of 2025 alone, Tether reported a net profit of $4.9 billion, bringing its year-to-date earnings to $5.7 billion. The majority of its reserves, which are held to back the value of its stablecoin, are in short-term U.S. Treasuries and money market funds.
However, Tether has historically faced scrutiny over its lack of a full audit and the composition of its reserves. While it has recently been working to improve transparency, its rival Circle has gained ground by being fully regulated and audited. The fundraising push could provide Tether with the deep capital needed to expand into new markets and address regulatory concerns as it lays the groundwork for a return to the U.S. market.
