Tether Explores $20 Billion Fundraising Round at $500 Billion Valuation

TLDR

• Tether is reportedly seeking to raise $15-20 billion at a $500 billion valuation through a private placement
• The deal would give investors about 3% of the company, with Cantor Fitzgerald serving as lead adviser
• Tether posted $4.9 billion profit in Q2 2025, bringing year-to-date total to $5.7 billion
• USDt remains the largest stablecoin with $172.8 billion market cap and 56% market share
• Final fundraising amount could be lower as discussions remain preliminary

Stablecoin issuer Tether Holdings is exploring a fundraising round that could value the company at $500 billion, according to Bloomberg sources. The potential deal would place Tether among the world’s most valuable private companies.

The company is considering raising between $15 billion and $20 billion in exchange for approximately 3% of the business through a private placement. Cantor Fitzgerald is serving as the lead adviser for the potential transaction.

Sources close to the matter cautioned that discussions remain preliminary and the final amount could be lower than initial targets. The transaction would involve new equity rather than existing investors selling their stakes.

Bo Hines, CEO of Tether’s newly created US unit called Tether USAT, told a conference in Seoul that the company has no plans to raise money. This statement appears to contradict the Bloomberg report about ongoing fundraising discussions.

Financial Performance Drives Valuation

Tether has become one of the most profitable companies globally on a per-employee basis. The company recorded $4.9 billion in net profit during the second quarter of 2025 alone.

This brings Tether’s year-to-date profit total to $5.7 billion. The strong financial performance stems from the company’s dominant position in the stablecoin market.

Tether’s USDt remains the largest dollar-backed stablecoin in circulation with a market value of $172.8 billion. This gives the company roughly 56% of the total $307.2 billion stablecoin market.

The proposed $500 billion valuation would put Tether alongside other tech giants like OpenAI and SpaceX. For comparison, OpenAI was also reportedly in talks about a potential raise at a similar valuation.

Market Position and Competition

Cantor Fitzgerald, which is advising the potential deal, holds a 5% ownership stake in Tether worth approximately $600 million. If Tether achieves the $500 billion valuation, Cantor’s stake would be worth $25 billion.

The investment firm was previously led by Howard Lutnick, who now serves as President Trump’s Commerce Secretary. The Wall Street Journal reported last year that Cantor secured its Tether stake through a previous investment.

Circle Internet Group, issuer of the USDC stablecoin, serves as Tether’s main competitor. Circle has a supply of $74 billion in USD-pegged tokens compared to Tether’s $172 billion.

Circle recently went public through an initial public offering and surged more than 160% on its debut. The company secured a valuation above $18 billion and has since climbed to nearly $33 billion in market value.

Stablecoin adoption has accelerated globally as these digital assets offer efficient money transfer capabilities. In the United States, the recently passed GENIUS stablecoin bill aims to establish clear regulations for issuers while preserving dollar dominance.

Tether recently announced plans to launch USAT, a USD-pegged stablecoin specifically for the US market.

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