- 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 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, about a multi-billion-dollar fundraising round that could position the company among the most valuable private firms globally, Bloomberg reported.
The fundraising could value Tether at as much as $500 billion.
The company is seeking $15 to $20 billion in exchange for roughly a 3% stake through a private placement.
Potential $500 Billion Valuation
If the capital raise succeeds, it would be Tether’s largest attempt to secure external funding to date and could rank the firm among the highest-valued private companies in the world.
A $500 billion valuation would place Tether ahead of many global blue-chip companies by size, reflecting both the scale of its token issuance and the financial returns generated by its reserves.
Tether’s dollar-pegged stablecoin, USDT, is widely used to transfer value across crypto markets and beyond, offering investors a way to trade 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.
Chief Technology Officer Paolo Ardoino leads the company operationally, 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 record of large-scale technology investments spanning self-driving cars, semiconductors and artificial intelligence.
A potential investment in Tether would align with SoftBank’s strategy of pursuing disruptive opportunities, similar to its planned $30 billion investment in OpenAI.
Ark Investment Management, led by Cathie Wood, has also shown strong interest in digital assets.
The firm previously invested in Circle Internet Financial, a close rival in the stablecoin market.
Circle’s USD Coin (USDC) currently has a market capitalization of roughly $74 billion, compared with tokens worth about $173.5 billion issued by Tether.
Potential involvement from SoftBank and Ark could bolster Tether’s efforts to expand its footprint in conventional finance and strengthen its political legitimacy, particularly in the U.S., where the company has faced scrutiny for its role in facilitating illegal transactions.
Advisory Role and Industry Impact
Cantor Fitzgerald LP, the New York-based investment bank long led by U.S. 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 U.S. authorities preparing tighter oversight of digital assets, securing high-profile backers could prove critical to Tether’s positioning in global markets.
If talks proceed and funding is secured, Tether’s valuation would mark a milestone not only for the company but for the broader cryptocurrency ecosystem, signaling continued integration of digital assets into mainstream finance.