Tether's $500B Bet: Scaling Stablecoins and Diversifying into AI, Energy, and Media

Tether Holdings SA, the issuer of the world’s largest stablecoin USDT, is in early-stage discussions to raise $15–$20 billion through a private placement, which could value the company at approximately $500 billion. The fundraising, involving new equity rather than secondary sales, is being advised by Cantor Fitzgerald and has drawn interest from high-profile investors, including SoftBank Group and Ark Investment Management. The deal would represent one of the largest private capital raises in the crypto sector, positioning Tether alongside private tech giants like OpenAI and SpaceXTether-reportedly-seeks-lofty-500-billion-valuation-in-capital-raise^[1]Softbank-and-ark-to-join-in-tethers-20b-funding-round^[5].

CEO Paolo Ardoino confirmed the initiative on his X account, stating the raise aims to “maximize the scale” of Tether’s strategy across stablecoins, AI, commodity trading, energy, and media. The company, which reported $4.9 billion in net profits for Q2 2025, holds $162.5 billion in reserves against $157.1 billion in liabilities. Its USDT stablecoin, pegged to the U.S. dollar, has a market capitalization exceeding $173 billion, dwarfing its closest rival, Circle’s USDC, at $74 billionTether-reportedly-seeks-lofty-500-billion-valuation-in-capital-raise^[1]Tether-eyes-20b-raise-at-500b-valuation-is-an-ipo-next^[3].

The proposed valuation reflects Tether’s dominant position in the stablecoin market, which has grown to $287 billion in 2025. Analysts note that the firm’s profitability stems from its reserve portfolio, including U.S. Treasuries and Bitcoin, which generated record returns during the Federal Reserve’s rate-hiking cycle. However, the valuation’s feasibility remains contingent on investor appetite, as the talks are still in early stagesTether-eyes-20b-raise-at-500b-valuation-is-an-ipo-next^[3]Tether-eyes-500b-valuation-amid-explosive-stablecoin-market-growth^[8].

Tether’s expansion strategy includes a U.S. market entry via a new stablecoin, USAT, regulated under the GENIUS Act. The firm recently appointed Bo Hines, a former White House crypto advisor, to lead U.S. operations, signaling its intent to capitalize on regulatory clarity under President Donald Trump’s pro-crypto policies. This move follows a 2021 $41 million fine for reserve disclosure issues, as Tether seeks to strengthen its institutional credibilityTether-reportedly-seeks-lofty-500-billion-valuation-in-capital-raise^[1]Softbank-cathie-wood-s-ark-among-potential-investors-in-tether-fundraising-report^[4].

The fundraising has reignited speculation about a potential Tether IPO, particularly after rival Circle’s successful public offering in June. However, Ardoino previously dismissed such rumors, emphasizing no immediate need for a listing. Meanwhile, institutional demand for stablecoins is surging, with 90% of surveyed institutions integrating them for treasury management and cross-border payments, according to FireblocksTether-eyes-20b-raise-at-500b-valuation-is-an-ipo-next^[3].

Critics caution that Tether’s rapid growth could introduce systemic risks, particularly if stablecoins erode central bank control over monetary policy. Moody’s warned in September that rising adoption in emerging markets may exacerbate liquidity vulnerabilities, though regulatory frameworks in advanced economies are tightening. For now, Tether’s valuation ambitions underscore its role as a pivotal player in the evolving crypto-asset landscape.