Tether Holdings, the company behind the world’s largest stablecoin USDT, is in talks to raise as much as $20 billion from new investors. The El Salvador-based firm is considering selling about 3% of its equity through a private placement, which could value the company at close to $500 billion. That would place Tether in the same league as high-profile private firms such as OpenAI and SpaceX.
The deal is not final, and the numbers may change as negotiations continue. People familiar with the talks said Cantor Fitzgerald is acting as lead adviser, while investors have been given access to a data room to review the company’s financial details. If successful, the fundraising would make Tether one of the most valuable private companies in the world, far above its stablecoin rival Circle Internet Group, which is valued at around $30 billion.
Chief executive Paolo Ardoino confirmed that Tether is exploring a raise to expand its business strategy. He pointed to areas beyond stablecoins, including artificial intelligence, commodity trading, energy, communications, and media. Ardoino said the goal is to bring in high-profile investors to maximize the company’s growth potential.
Tether’s USDT token has a market value of about $172 billion, making it the clear leader in stablecoins. Circle’s USDC token ranks second at $74 billion. Both tokens are tied to the US dollar and used widely across the global crypto market. Stablecoins play a key role in digital assets because they allow traders to move in and out of volatile cryptocurrencies while staying linked to fiat currency.
Tether earns most of its money from the reserves backing USDT. It invests heavily in cash-like assets such as US Treasuries and collects interest on them. In the second quarter of this year, Tether reported $4.9 billion in profit and claimed a 99% profit margin. Those numbers are not audited to the same standards as public companies, but they highlight the scale of the business.
Tether has faced scrutiny in the past. In 2021, the company paid a $41 million fine to settle allegations that it misrepresented the reserves backing USDT. Regulators in the United States have closely watched stablecoin issuers, and Tether has operated outside the US for several years. With Donald Trump now pushing pro-crypto policies in his second term, Tether has begun preparing a return to the American market. It recently announced plans for a US-regulated stablecoin and hired Bo Hines, a former White House crypto official, to lead the project.
The move reflects how stablecoin issuers are positioning themselves as major players in finance. By raising money at a $500 billion valuation, Tether would show that private investors see it as more than just a token issuer. Its business model has expanded into energy projects, including Bitcoin mining powered by renewable sources, and into AI and data ventures that may tie digital currencies with new technology.
Circle, Tether’s closest competitor, went public through a merger and is valued at a fraction of Tether’s potential target. The competition highlights the different paths the two largest stablecoin issuers have taken. Tether has remained private and highly profitable, while Circle has focused on regulation and transparency.
For investors, the size of the raise matters. A deal worth $15 to $20 billion would put Tether alongside the largest funding rounds in history. It would also show that stablecoins, once seen as a niche product, are now attracting mainstream capital on a scale rivaling tech giants. Cantor Fitzgerald’s role as adviser adds to the credibility of the effort, though the firm declined to comment.
Tether’s expansion also comes at a time of change in global markets. Falling US interest rates could reduce the company’s earnings from Treasury investments, and rivals are multiplying. Still, the company’s strong profits and dominance in stablecoins give it a unique position.
If Tether closes the deal by the end of the year, as some insiders expect, it would mark a turning point in crypto history. A $500 billion valuation would place a stablecoin issuer in the same conversation as companies shaping space exploration and artificial intelligence. For crypto enthusiasts and investors, it would be a sign of how far digital assets have come since their early days.
