Tether's Bank-Style Play Targets $500B Valuation as Stablecoin Giant

Tether Holdings SA, the issuer of the world’s largest stablecoin USDT, is in advanced negotiations for a $15–$20 billion funding round that could value the company at up to $500 billion, according to multiple reports. SoftBank Group Corp. and Ark Investment Management LLC, both prominent technology investors, are among the firms under consideration to participate in the private placement. The deal would represent one of the largest capital raises in the history of the cryptocurrency sector and position Tether as one of the most valuable private companies globallySoftBank, Ark in Talks to Invest in Tether’s Major Funding Round^[1].

The fundraising, which would see Tether offer a roughly 3% equity stake, underscores the growing institutional interest in stablecoins. USDT, with a market capitalization of $173.5 billion as of September 2025, dominates 63% of the stablecoin market. The company generates revenue by investing its reserves—backed by U.S. Treasuries and other cash-like assets—in interest-bearing instruments. Tether reported a net income of $4.9 billion in Q2 2025, with year-to-date profits reaching $5.7 billionSoftBank and Ark Invest reportedly join Tether’s $20 billion funding round^[4]. The firm’s business model has drawn comparisons to traditional financial institutions, with its reserves generating steady returns while maintaining a 1:1 peg to the U.S. dollar.

SoftBank, led by founder Masayoshi Son, has a history of aggressive bets on high-growth technology ventures, including investments in OpenAI and data-center infrastructure. Ark, managed by Cathie Wood, has previously invested in Circle Internet Group Inc., Tether’s closest competitor in the stablecoin space. Circle’s USDC token holds a market capitalization of $74 billion, significantly smaller than Tether’s holdings. The involvement of these firms could bolster Tether’s credibility in traditional finance and regulatory circles, particularly as the company seeks broader acceptance in the U.S. marketSoftBank, Ark in Talks to Invest in Tether’s Major Funding Round^[1].

Tether’s strategic moves to expand its regulatory footprint include the launch of a U.S.-compliant stablecoin, USAT, designed to align with the requirements of the GENIUS Act. The company has also hired Bo Hines, a former White House crypto advisor under President Donald Trump, to lead its U.S. operations. These efforts reflect Tether’s aim to address longstanding scrutiny over its role in alleged illicit financing activities and to position itself as a key player in the evolving U.S. crypto landscapeSoftBank and Ark Invest reportedly join Tether’s $20 billion funding round^[4].

The fundraising process is being advised by Cantor Fitzgerald LP, an investment bank with deep ties to the Trump administration. Howard Lutnick, the firm’s former CEO and current U.S. Commerce Secretary, has overseen both the advisory and asset-custody services for Tether. This relationship adds a layer of political and regulatory significance to the deal, as Tether navigates a complex legal environment in the U.S. and other jurisdictionsSoftBank, Ark in Talks to Invest in Tether’s Major Funding Round^[1].

Analysts note that the deal could reshape the stablecoin sector, which has grown by 40% year-to-date to $287 billion in total value locked. Citigroup recently projected that stablecoins could reach a $4 trillion market value in a bull scenario by 2030, driven by their potential to streamline cross-border payments and reduce reliance on traditional banking systemsTether (USDT) Fundraising Interest Reportedly From Softbank, Ark …^[2]. Tether’s dominance in this space, combined with its financial performance and strategic partnerships, positions it to benefit from this growth.

If the $500 billion valuation materializes, Tether’s ownership structure would see its chairman, Giancarlo Devasini, holding a stake valued at approximately $224 billion, surpassing the net worth of Warren Buffett. CEO Paolo Ardoino and former CEO Jean-Louis van der Velde would each hold stakes worth around $95 billion, further cementing Tether’s status as a financial powerhouseSoftBank, Ark Invest make shortlist for Tether’s $20B funding round^[3].

The outcome of the fundraising remains subject to regulatory approvals and market conditions. However, the interest from SoftBank and Ark signals a pivotal moment for Tether as it seeks to solidify its position in both crypto and traditional finance. The deal could set a new benchmark for private company valuations in the digital asset sector and attract additional institutional capital to the stablecoin marketSoftBank, Ark in Talks to Invest in Tether’s Major Funding Round^[1].