Tether's $500B Valuation: Stablecoins Staking a Tech Empire Claim

Tether Holdings SA, the issuer of the world’s largest stablecoin USDT, is preparing for a $20 billion funding round that could value the company at $500 billion, according to Bloomberg. The deal, which would represent one of the largest private capital raises in crypto history, involves early discussions with SoftBank Group and Ark Investment Management. By offering just 3% of its equity, Tether aims to secure between $15 billion and $20 billion, positioning itself as a top-tier private company. If finalized, the valuation would make Tether’s chairman, Giancarlo Devasini, the fifth-richest individual globally, with a personal stake estimated at $224 billion.

SoftBank and Ark Invest, both known for high-risk, high-reward technology bets, are among a select group of investors in early talks. SoftBank, led by Masayoshi Son, has previously invested in AI, semiconductors, and OpenAI, while Ark Invest, managed by Cathie Wood, has backed Circle, Tether’s primary competitor. Tether’s USDT, with a market capitalization of $173.5 billion, dwarfs Circle’s USDC at $74 billion. The funding round underscores growing institutional interest in stablecoins, a sector projected to grow significantly as they facilitate cross-border transactions and yield generation through U.S. Treasury holdings.

Cantor Fitzgerald LP, the New York-based investment bank, is advising Tether on the deal and managing its asset reserves. Howard Lutnick, Cantor’s former CEO and current U.S. Commerce Secretary, has ties to the firm’s operations. Tether’s profitability stems from interest earned on its reserves, which are primarily invested in short-term government debt. However, the company has faced regulatory scrutiny for alleged ties to illicit finance, prompting its push for broader legitimacy.

Tether’s expansion into the U.S. market, including the launch of a new stablecoin compliant with the GENIUS Act, highlights its strategic pivot toward regulatory acceptance. The firm has also hired Bo Hines, a former White House crypto advisor, to lead its U.S. operations. Meanwhile, Cantor Fitzgerald’s dual role as an adviser and asset custodian raises questions about conflict of interest, though its longstanding expertise in high-stakes deals positions it as a key enabler of the funding round.

The potential $500 billion valuation would rival private tech giants like OpenAI and place Tether in the same echelon as pre-IPO unicorns. For its leadership, the deal’s success would redefine wealth rankings: CEO Paolo Ardoino and former CEO Jean-Louis van der Velde could each amass $95 billion in net worth, surpassing Binance’s Changpeng Zhao. Such outcomes reflect the explosive growth of stablecoins, which have expanded 40% year-to-date to a $287 billion market, with Citi forecasting a $4 trillion bull-case scenario by 2030.

Despite the optimism, Tether’s roadmap hinges on regulatory clarity and investor confidence. The company’s reliance on U.S. Treasuries for yield and its opaque reserve disclosures have drawn criticism from lawmakers and watchdogs. As SoftBank and Ark Invest weigh their commitments, the outcome of this round will likely shape the trajectory of stablecoin innovation and institutional adoption in the broader financial ecosystem.

Source: [1] SoftBank, Ark Invest make shortlist for Tether’s $20B funding round (https://www.cryptopolitan.com/softbank-ark-invest-tether-20b-funding-round/)

[2] SoftBank and Ark to Join in Tether’s $20B Funding Round (https://www.cryptotimes.io/2025/09/27/softbank-and-ark-to-join-in-tethers-20b-funding-round/)

[3] SoftBank, Cathie Wood's Ark Among Potential Investors in Tether... (https://www.coindesk.com/business/2025/09/26/softbank-cathie-wood-s-ark-among-potential-investors-in-tether-fundraising-report)

[4] SoftBank, Ark in Talks to Invest in Tether’s Major Funding Round (https://www.bloomberg.com/news/articles/2025-09-26/softbank-ark-in-talks-to-invest-in-tether-s-major-funding-round)

[5] Tether Eyes $20B Funding Round, Attracts SoftBank, Ark Investment (https://blockonomi.com/tether-eyes-20b-funding-round-attracts-softbank-ark-investment/)