key insights
- Tether is in talks to raise between $15B and $20B through a private placement.
- The potential deal could value the company at about $500B.
- Funds will support expansion into AI, energy, and communications sectors.
- The raise would make Tether one of the world’s most valuable private firms.
Tether Holdings SA, the issuer of the world’s largest stablecoin USDT, is in discussions with investors to raise between $15 billion and $20 billion in fresh capital. The El Salvador-based company aims to sell around a 3% equity stake through a private placement, according to sources familiar with the matter. The talks are at an early stage, and the proposed valuation and funding amount could still change as negotiations progress.
If completed, the deal could value Tether at approximately $500 billion, positioning it among the world’s most valuable private firms alongside OpenAI and SpaceX. Such a valuation would mark a major milestone for the company, which has grown rapidly despite ongoing scrutiny over its regulatory practices and transparency. Cantor Fitzgerald is serving as the lead adviser for the transaction, though representatives from the firm declined to comment.
The proposed capital raise involves the issuance of new equity rather than existing investors selling their stakes. Individuals close to the discussions emphasized that the final figures may fall below the current targets, depending on investor interest and market conditions.
Expansion Across Emerging Business Lines
Tether Chief Executive Officer Paolo Ardoino confirmed that the company is evaluating a fundraising initiative with a group of high-profile investors. The move is intended to support the company’s expansion across several strategic sectors, including stablecoins, artificial intelligence, commodity trading, energy, communications, and media. Ardoino described the initiative as part of Tether’s broader effort to strengthen its global footprint and scale its operations.
Tether’s core product, the USDT stablecoin, maintains a one-to-one peg with the US dollar and has a market capitalization of roughly $172 billion. Its nearest competitor, Circle Internet Group’s USDC, holds a market value of about $74 billion. Despite rising competition, Tether continues to dominate the stablecoin market, serving as a key liquidity source across global crypto exchanges and decentralized finance platforms. https://www.bloomberg.com/news/articles/2025-09-23/crypto-giant-tether-seeks-500-billion-valuation-in-major-raise
Financial Performance and U.S. Market Return
Tether has benefited significantly from interest income generated through its reserves, which are primarily invested in cash-equivalent assets such as U.S. Treasuries. According to the company, it recorded $4.9 billion in profit during the second quarter of 2025, supported by high yields on its holdings. Ardoino recently stated that Tether’s profit margins stand near 99%, although the firm’s financial disclosures are not subject to the same standards as those of publicly listed companies.
The company has also taken steps to reestablish its presence in the United States following years of regulatory friction. It recently announced plans to launch a U.S.-regulated stablecoin and appointed Bo Hines, a former White House crypto official, to oversee the initiative. This move aligns with the more favorable stance toward digital assets under President Donald Trump’s administration.
Sources close to the matter indicated that potential investors have been granted access to a data room to assess the offering. If successful, the deal would mark one of the largest private placements in the history of the cryptocurrency industry.
