Tether's $500B Bid: Stablecoin Giant Aims to Join Tech Titans

Tether, the issuer of the world’s largest stablecoin USDT, is reportedly seeking up to $20 billion in a fundraising round that could value the firm at $500 billion, positioning it among the most valuable private companies globally. Japanese conglomerate SoftBank Group and investment firm Ark Invest are among the potential investors in early-stage talks, according to multiple reports. The deal, which would involve a private placement offering approximately 3% of Tether’s equity, underscores the surging interest in stablecoins as a disruptive force in global finance. Cantor Fitzgerald, led by U.S. Commerce Secretary Howard Lutnick, is advising Tether on the capital raise, marking a significant step toward institutional adoption of the stablecoin sector Tether (USDT) Fundraising Interest Reportedly From Softbank, Ark …^[1]SoftBank, Ark in talks to invest in Tether’s major funding round ...^[2]SoftBank and Ark Invest reportedly join Tether's $20 billion funding …^[3].

The proposed valuation of $500 billion would place Tether on par with leading tech giants and private companies, reflecting the explosive growth of the stablecoin market. USDT, with a market capitalization of $173 billion, dominates 63% of the stablecoin sector, generating $4.9 billion in net income during the second quarter of 2025. Tether’s business model relies on investing reserves—primarily U.S. Treasuries—backing its tokens, allowing the firm to capture yields while maintaining a 1:1 peg to the U.S. dollar. Analysts at Citi project that stablecoins could reach $4 trillion in market value under a bull-case scenario, driven by their potential to streamline cross-border transactions and reduce reliance on traditional banking systems Tether (USDT) Fundraising Interest Reportedly From Softbank, Ark …^[1]SoftBank, Ark in talks to invest in Tether’s major funding round ...^[2].

Tether’s expansion into the U.S. market is a key factor in its strategic pivot. The company announced plans to launch a new stablecoin, USAT, designed to comply with the GENIUS Act, the first federal cryptocurrency law in the United States. This move aligns with Tether’s broader efforts to secure regulatory acceptance and political legitimacy. The firm recently appointed Bo Hines, former director of the White House Crypto Council under President Donald Trump, as its Strategic Advisor for Digital Assets and U.S. Strategy. Hines’ appointment signals Tether’s intent to navigate the complex regulatory landscape and compete with rivals like Circle’s USDC, which holds a $70 billion market share Tether (USDT) Fundraising Interest Reportedly From Softbank, Ark …^[1]SoftBank and Ark Invest reportedly join Tether's $20 billion funding …^[3].

The fundraising round, if successful, would mark Tether’s largest external capital raise to date and set a new benchmark for crypto company valuations. The involvement of SoftBank and Ark Invest—both of which have previously invested in high-growth technology ventures—could accelerate Tether’s integration into traditional finance. SoftBank’s recent $30 billion commitment to OpenAI and Ark Invest’s prior investments in stablecoin competitors highlight the firms’ appetite for disruptive assets. The deal also reflects broader trends in the crypto market, where stablecoins are increasingly viewed as infrastructure for decentralized finance (DeFi) and global payments SoftBank and Ark Invest reportedly join Tether's $20 billion funding …^[3]SoftBank and Ark to Join in Tether’s $20B Funding Round^[4].

Industry observers note that Tether’s valuation and fundraising ambitions hinge on maintaining trust in its reserve transparency and operational resilience. The firm’s dominance in the stablecoin market has faced scrutiny over its reserve composition and governance structure, but its consistent profitability and strategic hires suggest a focus on long-term stability. As the stablecoin sector grows, institutional investors are likely to prioritize firms with robust regulatory frameworks and transparent practices. Tether’s push into the U.S. market, coupled with its financial performance, positions it to capitalize on the sector’s expansion while addressing concerns about systemic risk Tether (USDT) Fundraising Interest Reportedly From Softbank, Ark …^[1]SoftBank, Ark in talks to invest in Tether’s major funding round ...^[2].

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