Tether Seeks $200B Funding, Valuation at $5000B

Tether Holdings SA, the world's largest stablecoin issuer, is reportedly in discussions with investors to raise up to 200 billion dollars in funding. This significant capital injection could potentially value the company at around 5000 billion dollars, placing it among the most valuable private companies globally. The funding round involves the private placement of approximately 3% of the company's shares, with negotiations currently underway.

According to sources familiar with the matter, the final figures could be lower than the initial targets, as the discussions are still in the early stages and details are subject to change. The proposed valuation of 5000 billion dollars would position Tether alongside other high-profile private companies such as OpenAI and SpaceX, highlighting a significant milestone for the relatively unregulated cryptocurrency industry. Despite increasing competition and the impact of declining U.S. interest rates on profitability, this move underscores Tether's dominant position in the stablecoin market.

Tether's closest competitor, Circle Internet Group Inc., a publicly listed stablecoin issuer, has a market capitalization of around 300 billion dollars as of the latest available data. The proposed funding round for Tether would involve the issuance of new shares rather than the sale of existing shares by current investors. Cantor Fitzgerald is serving as the chief advisor for this transaction.

This potential funding round comes at a time when the cryptocurrency industry is experiencing rapid growth and increasing adoption. Tether's stablecoins, such as USDT, are widely used for trading and transactions, providing a stable store of value in the volatile cryptocurrency market. The successful completion of this funding round would not only strengthen Tether's financial position but also reinforce the growing acceptance and legitimacy of cryptocurrencies within the broader financial ecosystem.