Tether Aiming for $500 Billion Valuation with Ambitious $20 Billion Funding Round

The company Tether, which issues USDT, is in discussions with investors to raise $20 billion, potentially increasing its valuation to $500 billion. According to sources cited by Bloomberg, the final amount may be considerably lower than stated, as the negotiations are still in preliminary stages. Reports suggest the discussions involve the sale of approximately 3% of the company’s shares.

Cantor Fitzgerald is acting as the deal’s advisor, having previously acquired a 5% stake in the issuer. If the information is verified and financing is secured, Tether would become one of the largest private firms globally, alongside OpenAI and SpaceX.

Circle, which backs USDC, Tether’s main competitor, has a valuation of $30 billion. On June 5, Circle conducted an IPO, listing its shares on the NYSE.

The company has yet to comment on the rumors. Earlier, at a conference in Seoul, Bo Hines, head of Tether’s U.S. division, stated that the issuer did not plan to seek additional capital. However, Bloomberg sources indicated there would be a release of new shares rather than a sale of existing shareholders’ stakes.

Tether continues to be one of the most successful firms in the crypto industry, reporting a net profit of $4.9 billion for the second quarter. In July, the issuer’s CEO, Paolo Ardoino, confirmed plans to launch USDT in the American market. He expressed Tether’s intention to acquire the status of a foreign issuer of stablecoins in accordance with the requirements of the GENIUS Act, estimating the timeline for these plans at three years.

On September 12, Tether introduced USAT, a dollar-backed stablecoin that is fully regulated in the U.S.