Stablecoin Powerhouse Tether Valued at $500B, Rivaling Tech Giants' Financial Might

Tether, the issuer of the world’s largest stablecoin USDT, is seeking to raise between $15 billion and $20 billion through a private placement, a move that would value the company at approximately $500 billion, according to multiple reportsTether Looking to Raise Upto $20B, Bringing its Valuation to $500B^[1]Tether reportedly planning to raise up to $20 billion at roughly $500b valuation^[2]. The fundraising, which involves issuing new equity rather than selling existing shares, is in early stages, with prospective investors granted access to a data room to facilitate the dealTether Looking to Raise Upto $20B, Bringing its Valuation to $500B^[1]. Cantor Fitzgerald is serving as the lead adviserTether Looking to Raise Upto $20B, Bringing its Valuation to $500B^[1].

The valuation, if realized, would place Tether among the most valuable private companies globally, comparable to OpenAI and SpaceXTether Looking to Raise Upto $20B, Bringing its Valuation to $500B^[1]Tether reportedly planning to raise up to $20 billion at roughly $500b valuation^[2]. The stablecoin giant reported a net profit of $4.9 billion in the second quarter of 2025, with $162.5 billion in reserves against $157.1 billion in liabilitiesTether Looking to Raise Upto $20B, Bringing its Valuation to $500B^[1]. Tether’s reserves include $8.9 billion in bitcoin, underscoring its diversified asset baseTether Looking to Raise Upto $20B, Bringing its Valuation to $500B^[1]. The proposed raise would represent a significant capital infusion for a company that has long operated under a veil of regulatory scrutiny and opaque financial practicesTether Looking to Raise Upto $20B, Bringing its Valuation to $500B^[1].

Tether’s USDT currently holds a market capitalization of $172.8 billion, dwarfing its closest competitor, Circle’s USDC, which has a market cap of $74 billionTether Looking to Raise Upto $20B, Bringing its Valuation to $500B^[1]. The stablecoin’s dominance is further reinforced by its widespread adoption across 13 blockchain networks, including Ethereum, Tron, and Solana, with over 10.7 million active wallets as of March 2025Tether Statistics 2025: In-Depth Analysis of USDT's Performance^[3]. The fundraising aligns with Tether’s broader strategy to solidify its position in both traditional finance and decentralized ecosystems, as evidenced by its recent foray into AI and plans for a U.S.-focused stablecoinTether Statistics 2025: In-Depth Analysis of USDT's Performance^[3].

Analysts note that the valuation reflects Tether’s unique ability to monetize its reserves through interest on U.S. Treasuries and other low-risk assets. The company’s Q2 2025 financials highlight a net profit of $4.9 billion, driven by its $90.87 billion in U.S. Treasury holdings and $5.37 billion in bitcoin reservesTether Statistics 2025: In-Depth Analysis of USDT's Performance^[3]. However, the proposed raise’s success hinges on regulatory and market conditions, as the final amount could be “significantly lower” than the maximum targetsTether Looking to Raise Upto $20B, Bringing its Valuation to $500B^[1].

The valuation also places Tether in direct competition with emerging private tech firms. OpenAI, for instance, is in parallel talks to raise $6 billion in a secondary offering at a similar $500 billion valuation, while SpaceX and Anthropic are valued at $170 billion and $170 billion, respectively. Tether’s move underscores the growing financial clout of stablecoin issuers, which have become critical infrastructure for global crypto markets.

Despite its dominance, Tether faces ongoing legal and reputational challenges, including a 2021 CFTC settlement over misleading reserve disclosuresTether Statistics 2025: In-Depth Analysis of USDT's Performance^[3]. The company has since taken steps to enhance transparency, including publishing monthly reserve breakdowns and hiring a CFO to pursue a full financial auditTether Statistics 2025: In-Depth Analysis of USDT's Performance^[3]. These efforts aim to address lingering skepticism about its financial health and governance.

The press release concludes with a note that Tether has not yet responded to requests for commentTether Looking to Raise Upto $20B, Bringing its Valuation to $500B^[1]. The proposed raise, if executed, would mark a pivotal moment for the stablecoin industry, signaling broader institutional acceptance of crypto infrastructure as a strategic asset class.