Crypto enthusiasts are abuzz with the latest news surrounding Tether, the issuer of the popular USDT stablecoin. A major funding round could potentially reshape the landscape of private investments in the cryptocurrency sector.
Recent reports suggest that Tether is contemplating raising between $15 billion and $20 billion in equity, which could elevate its valuation to an unprecedented $500 billion if negotiations go as planned.
Strategic Valuation and Funding Goals
Insiders reveal that Tether plans to offer roughly a 3% stake in the company as part of this funding strategy. This unique approach is how the estimated $500 billion valuation is calculated.
Notably, the financing series aims to issue new stock rather than facilitate existing shareholders to offload their shares. If the projected figures are realized, this would mark one of the largest fundraising efforts within the crypto arena.
Major Investment Interest from SoftBank and Ark Investment Management in Tether’s Funding Round
As reported by @Bloomberg, investment giants such as @SoftBank_Group and Ark Investment Management are engaging in serious discussions to join Tether’s funding round.
— Crypto Insight (@CryptoInsight) September 26, 2025
The current market cap for Tether’s USDT hovers around $170 billion to $175 billion, boosting interest from potential investors as negotiations unfold.
Tether is diversifying its operations beyond stablecoins, exploring opportunities in sectors such as cloud computing, telecommunications, and real estate investments.
Potential Investors in Play
Sources indicate that key players such as Ark Investment — spearheaded by Cathie Wood — and SoftBank are among those expressing interest in the funding round.
Cantor Fitzgerald has been identified as the advising firm in these discussions. While discussions are at an early stage, neither Tether nor any potential investors have made official statements regarding a finalized agreement.
What attracts these major investors? Tether generates substantial revenue through interest accrued on its reserves, mainly invested in U.S. Treasuries. Reports indicate that Tether realized around $13.4 billion in profits last year alone from these investments.
Furthermore, Tether supports approximately 500 million users globally, serving as a crucial bridge between traditional fiat currencies and pivotal digital assets like Bitcoin and Ether.
Regulatory Considerations and Financial Insights
The heightened scrutiny on reserve disclosures and past controversies means that any large-scale investment into Tether will invite considerable regulatory oversight.
Experts suggest that a high private valuation could intensify these concerns, particularly as Tether plans to expand its business model and roll out a new U.S. stablecoin, tentatively named USAT.
The involvement of prominent financial institutions might amplify the public and regulatory interest in Tether’s operations. However, it’s crucial to note that negotiations could still shift or indeed falter. The ambitious funding target indicates the upper limits of what Tether is aiming to achieve, with both investors and regulators closely monitoring developments.
Image sourced from Stake, with graphical data from TradingView
