Tether’s $500B Valuation Quest Rivals Tech Giants with SoftBank and Ark Backing

SoftBank Group Corp. and Ark Investment Management LLC are in advanced discussions to lead a major funding round for Tether Holdings SA, potentially valuing the stablecoin issuer at up to $500 billion. This valuation would place Tether among the world’s most valuable private companies, rivaling the likes of tech giants such as Microsoft or Amazon. The firm is seeking between $15 billion and $20 billion in fresh capital in exchange for a roughly 3% stake, according to Bloomberg News. The fundraising, if finalized, would represent one of the largest private equity deals in the cryptocurrency sector to date.

Tether, the issuer of the widely used stablecoin USDT, has faced regulatory scrutiny in the past, particularly in the U.S., over its role in illicit financial activities. However, the involvement of institutional heavyweights like SoftBank and Ark could bolster its credibility and accelerate mainstream adoption. SoftBank, led by founder Masayoshi Son, has a history of high-stakes technology investments, including its $30 billion commitment to OpenAI. Ark, helmed by Cathie Wood, has already invested in stablecoin rival Circle Internet Group, which holds a market value of approximately $74 billion compared to Tether’s $173.5 billion in user-held tokens.

The proposed deal is being advised by Cantor Fitzgerald LP, the New York-based investment bank led by U.S. Commerce Secretary Howard Lutnick. Cantor also oversees custody of Tether’s assets, a role that adds a layer of institutional trust to the firm’s operations. Tether’s business model relies on its reserves—backed by U.S. Treasuries and cash equivalents—to generate interest income while maintaining its peg to the U.S. dollar. A $500 billion valuation would translate to a $224 billion stake for Giancarlo Devasini, Tether’s chairman and co-founder, according to Bloomberg’s calculations.

The funding round aligns with broader trends in the crypto industry, where stablecoins have become critical infrastructure for decentralized finance (DeFi) and cross-border transactions. Tether’s dominance in the sector, with over $82 billion in circulating USDT on the TRON blockchain alone, underscores its strategic position. However, the firm’s regulatory challenges persist, particularly in jurisdictions where stablecoin transparency and reserve adequacy remain contentious. The backing of SoftBank and Ark could signal a shift in Tether’s approach to regulatory engagement, emphasizing political and institutional legitimacy.

SoftBank’s participation reflects its ongoing bets on disruptive technologies, including artificial intelligence and blockchain infrastructure. The firm’s recent investments in OpenAI and its expansion into DeFi-related ventures highlight its long-term strategy to position itself at the forefront of the digital economy. Meanwhile, Ark’s interest in Tether aligns with its broader thesis on the tokenization of traditional assets, a trend that has gained momentum with the rise of tokenized equities and real-world asset (RWA) projects.

The potential $500 billion valuation for Tether raises questions about the scalability of its reserves and the sustainability of its interest-generating strategy. While the firm’s current reserves are estimated to exceed $100 billion, a significant capital infusion would require robust asset management and regulatory compliance. Critics have previously raised concerns about the concentration of risk in Tether’s reserve portfolio, particularly its reliance on short-term U.S. government securities. However, the firm’s leadership has emphasized its commitment to transparency, publishing regular reserve audits since 2023.

The outcome of the funding discussions remains uncertain, as Tether and SoftBank have declined to comment. Ark’s representatives have also not responded to requests for clarification. If the deal proceeds, it would mark a pivotal moment for Tether, solidifying its position as a cornerstone of the global stablecoin ecosystem while navigating the evolving regulatory landscape. The involvement of institutional investors could also set a precedent for future fundraising in the crypto sector, where private valuations have historically lagged behind public market benchmarks.

Source: [1] 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)