- Tether is seeking $15–20 billion in funding at a $500 billion valuation, with SoftBank and Ark in talks.
- A $500 billion valuation could make Tether one of the largest private companies in the world.
- Support from SoftBank and Ark could strengthen Tether’s push for mainstream legitimacy.
Tether Holdings SA, issuer of the world’s largest stablecoin, is holding early discussions with major investors, including SoftBank Group Corp. and Ark Investment Management LLC, about a multi-billion dollar fundraising round that could place the company among the most highly valued private firms globally, Bloomberg reports.
The proposed capital raise could value Tether at as much as $500 billion.
The company is reportedly seeking $15 to $20 billion in exchange for roughly a 3% stake through a private placement.
Potential $500 Billion Valuation
If completed, this would be Tether’s largest external capital raise to date and could place the firm alongside the highest-valued private companies in the world.
At a $500 billion valuation, Tether would exceed many global blue-chip companies by market value, reflecting both the scale of token issuance and the financial returns generated from its reserves.
Tether’s dollar-pegged stablecoin, USDT, is widely used to transfer value on cryptocurrency markets and beyond, offering investors a means to transact outside traditional banking systems.
Backed by cash-like assets—primarily U.S. Treasury securities—the company has generated significant income from interest on those reserves.
The firm is led by CEO Paolo Ardoino, with co-founder Giancarlo Devasini serving as chairman and remaining the company’s largest shareholder.
Bloomberg estimated that a $500 billion valuation would value Devasini’s personal stake at nearly $224 billion.
Strategic Support from SoftBank and Ark
SoftBank, based in Tokyo and led by founder Masayoshi Son, has a long history of making ambitious technology investments, from autonomous vehicles to semiconductors and artificial intelligence.
A potential investment in Tether would align with SoftBank’s strategy of backing transformative opportunities, including its planned large-scale investment in AI ventures.
Ark Investment Management, led by Cathie Wood, has also shown strong interest in digital assets.
The firm previously invested in Circle Internet Group Inc., a direct competitor to Tether in the stablecoin market.
Circle’s USD Coin (USDC) currently has a market capitalization of about $74 billion, compared with roughly $173.5 billion in tokens issued by Tether.
Involvement from SoftBank and Ark could bolster Tether’s efforts to expand its presence in mainstream finance and strengthen its political and regulatory legitimacy—particularly in the United States, where the company has faced scrutiny over its role in facilitating illicit transactions.
Advisory Role and Industry Impact
Cantor Fitzgerald LP, the New York investment bank long led by current U.S. Commerce Secretary Howard Lutnick, is advising Tether on the fundraising effort.
The firm also provides custody services for Tether’s assets, underscoring its operational role in the company’s financial infrastructure.
The fundraising effort comes as stablecoins draw increasing attention from investors, regulators, and governments.
With U.S. authorities preparing tighter oversight of digital assets, securing high-quality financial backers may prove crucial for positioning Tether in global markets.
If talks progress and financing is secured, a valuation at this scale would mark a milestone not only for Tether but for the broader cryptocurrency ecosystem, signaling ongoing integration of digital assets into mainstream finance.