- Tether seeks $15–20B funding at $500B valuation with SoftBank and Ark in talks.
- A $500B valuation could make Tether one of the world’s largest private firms.
- SoftBank and Ark backing may boost Tether’s push for mainstream legitimacy.
Tether Holdings SA, the issuer of the world’s largest stablecoin, is in early discussions with major investors, including SoftBank Group Corp. and Ark Investment Management LLC, for a multibillion-dollar fundraising round that could place the company among the most valuable private firms globally, reported Bloomberg.
The fundraising effort could value Tether at as much as $500 billion.
The company is seeking between $15 billion and $20 billion in exchange for roughly a 3% stake through a private placement.
A potential $500 billion valuation
If successful, the fundraising would represent Tether’s largest attempt yet to secure external capital and could rank it alongside the most highly valued private companies in the world.
At a $500 billion valuation, Tether would surpass many global blue-chip firms in size, reflecting both the scale of its token issuance and the financial returns generated from its reserves.
Tether’s dollar-pegged stablecoin, USDT, is widely used to move value across crypto markets and beyond, offering a way for investors to transact outside of traditional banking systems.
Backed by cash-like assets, primarily US Treasuries, the company has earned substantial profits from interest income on these reserves.
Chief Executive Officer Paolo Ardoino leads the company, while co-founder Giancarlo Devasini serves as chairman and remains its largest shareholder.
Bloomberg estimated that a $500 billion valuation would value Devasini’s personal stake at nearly $224 billion.
Strategic backing from SoftBank and Ark
Tokyo-based SoftBank, led by founder Masayoshi Son, has a long history of making ambitious technology bets, ranging from self-driving cars to semiconductors and artificial intelligence.
A potential investment in Tether would align with its strategy of pursuing disruptive opportunities, including its planned $30 billion investment in OpenAI.
Ark Investment Management, led by Cathie Wood, has also shown strong interest in digital assets.
The firm has previously invested in Circle Internet Group Inc., Tether’s closest rival in the stablecoin space.
Circle’s USD Coin (USDC) currently has a market value of about $74 billion, compared with $173.5 billion worth of tokens issued by Tether.
The potential involvement of SoftBank and Ark could bolster Tether’s efforts to expand its footprint in mainstream finance and enhance its political legitimacy, particularly in the US, where the company has previously faced scrutiny over its role in facilitating illicit transactions.
Advisory role and industry impact
Cantor Fitzgerald LP, the New York-based investment bank led for years by current US Commerce Secretary Howard Lutnick, is advising Tether on the fundraising.
The firm also provides custody services for Tether’s assets, underscoring its key role in the company’s financial operations.
The fundraising comes as stablecoins increasingly attract attention from investors, regulators, and governments.
With US authorities preparing stricter oversight of digital assets, securing high-profile financial backers could prove vital for Tether’s positioning in global markets.
If the talks progress and funding is secured, Tether’s valuation would mark a milestone not only for the company but also for the broader cryptocurrency ecosystem, signaling the continued integration of digital assets into mainstream finance.
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