Tether's $500B Valuation Gambit: Can Stablecoins Become Global Infrastructure?

Tether, the issuer of the world’s largest stablecoin, has confirmed plans for a major capital raise that could value the company at $500 billion, rivaling private tech giants such as OpenAI and SpaceX. The firm, based in El Salvador, is seeking to raise between $15 billion and $20 billion through a private placement for a 3% stake, according to reports from Bloomberg and CoindeskTether Reportedly Seeks Lofty $500-Billion Valuation in Capital Raise^[1]Tether Looking to Raise Up to $20B, Bringing Its Valuation to $500B^[2]. The transaction involves issuing new equity rather than selling existing shares, with Cantor Fitzgerald acting as lead advisorTether Reportedly Seeks Lofty $500-Billion Valuation in Capital Raise^[1]. CEO Paolo Ardoino validated the fundraising on his X account, emphasizing that the proceeds would "maximize the scale" of Tether’s strategy across stablecoins, artificial intelligence, energy, and other venturesTether Reportedly Seeks Lofty $500-Billion Valuation in Capital Raise^[1].

The proposed valuation of $500 billion would place Tether among the most valuable private companies globally. For context, OpenAI’s recent fundraising round valued it at $300 billion, while SpaceX has attracted similar private capital. Tether’s USD Tether (USDT) stablecoin, pegged to the U.S. dollar, currently holds a market cap of $172.8 billion, far outpacing its closest rival, Circle’s USDC, which has a $74 billion market capTether Reportedly Seeks Lofty $500-Billion Valuation in Capital Raise^[1]Tether Looking to Raise Up to $20B, Bringing Its Valuation to $500B^[2]. The firm also reported a $4.9 billion net profit in the second quarter of 2025, with $162.5 billion in reserves against $157.1 billion in liabilitiesTether Looking to Raise Up to $20B, Bringing Its Valuation to $500B^[2].

Ardoino highlighted Tether’s strategic pivot to re-enter the U.S. market, leveraging the pro-crypto stance of the Trump administration and the GENIUS Act, which facilitates stablecoin regulation. The company recently established USAT, a U.S.-regulated stablecoin venture led by former White House digital assets director Bo HinesTether Reportedly Seeks Lofty $500-Billion Valuation in Capital Raise^[1]. This move underscores Tether’s intent to align with U.S. regulatory frameworks while expanding its business lines into AI and energy sectors.

The capital raise remains in early negotiations, with prospective investors granted access to a data room to evaluate the opportunity. While the final terms could shift, the potential $500 billion valuation signals a dramatic shift in Tether’s trajectory. The firm’s aggressive fundraising aligns with broader institutional interest in crypto assets, exemplified by companies like BitMine, which recently raised $365 million to expand its Ethereum holdings. Tether’s ability to attract high-profile investors and scale its operations may further solidify its dominance in the stablecoin market.

Analysts note that the valuation could reshape perceptions of stablecoins as critical infrastructure in the global financial system. However, challenges remain, including regulatory scrutiny and competition from rivals. Tether’s success in this raise would not only elevate its market position but also validate the growing role of stablecoins in cross-border transactions and digital asset ecosystemsTether Reportedly Seeks Lofty $500-Billion Valuation in Capital Raise^[1].