Tether Seeks $20B to Join OpenAI, SpaceX at $500B Valuation

Tether (USDT), the largest stablecoin by market capitalization, is reportedly seeking to raise between $15 billion and $20 billion through a private placement for a 3% stake in the company, which would value the firm at approximately $500 billion. This valuation would position Tether on par with tech giants like OpenAI and SpaceX. The move, disclosed by Bloomberg citing unnamed sources, 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 …^[1]. Cantor Fitzgerald is serving as the lead adviser for the fundraising effortTether Looking to Raise Upto $20B, Bringing its Valuation to …^[1].

Tether’s financial performance underscores its ability to command such a valuation. In Q2 2025, the company reported a net profit of $4.9 billion, with total assets exceeding $162.5 billion and liabilities at $157.1 billion. The stablecoin issuer holds $127 billion in U.S. Treasury exposure—$105.5 billion direct and $21.3 billion indirect—as well as $8.9 billion in bitcoin reservesTether Issues $20B in USD₮ YTD, Becomes One of Largest U.S. Debt Holders with $127B in Treasuries, Net Profit ~$4.9B in Q2 2025 Attestation Report^[2]. These figures, confirmed by an attestation from BDO, a top-tier accounting firm, highlight Tether’s robust liquidity and solvency. The company also noted that shareholder equity remains stable at $5.47 billion, reinforcing its long-term sustainabilityTether Issues $20B in USD₮ YTD, Becomes One of Largest U.S. Debt Holders with $127B in Treasuries, Net Profit ~$4.9B in Q2 2025 Attestation Report^[2].

The proposed raise reflects Tether’s strategic focus on expanding its influence in the global digital economy. USDT’s circulating supply has grown to $157 billion, a $20 billion increase year-to-date, driven by its role as a critical infrastructure for cross-border transactions, remittances, and decentralized finance (DeFi) platforms. Tether CEO Paolo Ardoino emphasized that the company is “shaping global demand” for stablecoins, leveraging its reserves and operational discipline to maintain trust in an increasingly volatile marketTether Issues $20B in USD₮ YTD, Becomes One of Largest U.S. Debt Holders with $127B in Treasuries, Net Profit ~$4.9B in Q2 2025 Attestation Report^[2]. The valuation also aligns with broader regulatory developments, such as the U.S. GENIUS Act, which aim to formalize frameworks for digital dollar innovationTether Issues $20B in USD₮ YTD, Becomes One of Largest U.S. Debt Holders with $127B in Treasuries, Net Profit ~$4.9B in Q2 2025 Attestation Report^[2].

Market analysts view the fundraising as a pivotal moment for Tether and the stablecoin sector. A $500 billion valuation would represent a significant leap from its current market cap of $172.8 billion for USDT alone. However, the final terms could differ, as Bloomberg noted that the raise’s size might decrease before finalizationTether Looking to Raise Upto $20B, Bringing its Valuation to …^[1]. The move also raises questions about competition with other stablecoins like USDC, which has a $74 billion market cap. Tether’s dominance is further bolstered by its reinvestment strategy, including $4 billion allocated to U.S.-based projects such as XXI Capital and Rumble, signaling a broader push into emerging technologiesTether Issues $20B in USD₮ YTD, Becomes One of Largest U.S. Debt Holders with $127B in Treasuries, Net Profit ~$4.9B in Q2 2025 Attestation Report^[2].

The fundraising highlights the growing role of stablecoins in bridging traditional finance and blockchain ecosystems. With over 150 countries utilizing USDT for commerce and remittances, Tether’s expansion could accelerate adoption in regions with limited banking access. However, the company’s reliance on U.S. Treasuries and its opaque reserve composition have historically drawn regulatory scrutiny. The latest attestation, while reassuring, does not include proprietary investments in artificial intelligence or renewable energy, which are separate from the reserves backing issued tokensTether Issues $20B in USD₮ YTD, Becomes One of Largest U.S. Debt Holders with $127B in Treasuries, Net Profit ~$4.9B in Q2 2025 Attestation Report^[2].