Tether Seeks $500B Valuation in New Raise as Investors Stay Cautious
Tether is seeking investor commitments for a fundraising round that would value the stablecoin issuer at $500 billion, with the company targeting a close within the next two weeks. The firm has cautioned that if demand does not meet expectations, the timeline could slip.
CEO Paolo Ardoino said talks are underway with a select group of investors, with the goal of scaling Tether's stablecoin business and expanding its commodity-linked products. An Information report said a $500 billion valuation would place Tether among the world's largest financial firms—behind JPMorgan Chase's $794.55 billion market capitalization and ahead of Bank of America's $352.86 billion.
Tether's flagship USDt stablecoin is valued at $184 billion. The company also offers Tether Gold (XAUt) and Tether EURt (EURt), broadening its product lineup.
Fundraising plans and market standing
In September, Tether explored raising as much as $20 billion, a move that would put its valuation close to $500 billion. Bloomberg previously reported the plan could involve selling roughly a 3% stake via a private placement, with Cantor Fitzgerald serving as lead adviser. Ardoino said proceeds would support a significant expansion of operations, though sources said the final raise could come in below the headline target.
Tether's financial performance has also drawn attention. The company reported $4.9 billion in profit in the second quarter, bringing year-to-date profit to $5.7 billion.
Regulatory backdrop and industry trends
Stablecoins are gaining traction globally as a tool to cut time and costs in cross-border payments. In the U.S., the GENIUS stablecoin legislation aims to set rules for issuers while supporting the dollar's role in the financial system. Circle, the issuer of USDC, recently filed for a U.S. IPO under the ticker "CRCL" and reported $1.67 billion in revenue for 2024.
Regulators continue to flag risks. Federal Reserve Governor Michael Barr warned that stablecoins could be used for money laundering or terrorist financing. At the same time, about 66% of stablecoins are held in emerging markets where access to dollars is limited—an adoption pattern that could amplify the impact of Tether's planned fundraising across crypto markets and the broader financial system.
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