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Crypto giant Tether eyes fundraising to rank among biggest privates – Crypto News

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Tether Holdings SA, the issuer of the world’s largest stablecoin, is in early talks with investors about raising as much as $20 billion. As reported by Bloomberg, if successful, the deal would push the crypto giant into the ranks of the world’s most highly valued private firms.

According to people familiar with the discussions, Tether is seeking between $15 billion and $20 billion in exchange for roughly a 3% stake through a private placement. One of the people involved cautioned that those are upper-end targets and the eventual figures could be much lower. The talks are still in the early stages, and details may shift.

At the high end, the proposed fundraising could value Tether at around $500 billion, putting it on par with companies such as OpenAI and Elon Musk’s SpaceX. That would mark a remarkable rise for a crypto giant that has long operated under light regulation, even as new rivals enter the market and lower US interest rates threaten to erode the earnings that have fueled its growth. Circle Internet Group, Tether’s closest rival and a publicly listed stablecoin issuer, was worth about $30 billion as of Tuesday.

The deal would involve new shares rather than existing investors cashing out, the people said. Cantor Fitzgerald is serving as the lead adviser.

Tether chief executive Paolo Ardoino confirmed the company is evaluating a potential raise from well-known investors. In a post on X, he said the funding would be aimed at expanding across both existing and new areas, which include stablecoins, artificial intelligence, commodity trading, energy, communications, and media. Cantor declined to comment.

The move comes as the crypto giant looks to reestablish a US presence. The company has been absent from the country for several years after disputes with regulators, including a $41 million fine in 2021 to settle claims that it misrepresented its reserves. Now, with President Donald Trump’s pro-crypto stance, Tether has been preparing to return. Earlier this month it named a chief executive for its US business, called USAT, which will operate under the GENIUS Act.

Stablecoins are digital assets designed to mirror the value of traditional currencies. Tether’s USDT token, tied to the US dollar, has a market value of $172 billion—far ahead of Circle’s $74 billion USDC token. Tether has earned billions in profit by investing its reserves in cash-like assets such as US Treasuries. In July, the company said in a blog post that it made $4.9 billion in profit during the second quarter. Ardoino has also claimed that Tether’s profit margin is 99%, though the company is not required to follow the same reporting rules as publicly traded firms.

The company’s US strategy has been building for months. In addition to unveiling plans for a regulated stablecoin, Tether recently appointed Bo Hines, a former White House crypto official, to help lead its push into the market.

Investors considering the deal have been given access to company data in recent weeks to review the offer, people familiar with the process said. They expect the fundraising could be completed by the end of the year.

(Photo by Jievani Weerasinghe)

See also: Brandon Lutnick teams up with SoftBank, Tether on $3.6bn bitcoin vehicle

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Tags: blockchain, cryptocurrency, digital asset, tether, token

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