Tether Targets $20 Billion Funding Round in Push for $500 Billion Valuation - Bloomberg

Tether makes power play for stablecoin dominance with massive capital raise

The stablecoin giant seeks unprecedented funding to cement market position

With $20 billion in fresh capital, Tether aims for half-trillion dollar valuation that would dwarf traditional finance peers

Market watches closely as crypto's most controversial success story prepares for next phase

Because nothing says 'stable' like chasing venture capital multiples usually reserved for AI startups

Tether, the issuer of the world's largest stablecoin, USDT, is reportedly in talks with investors to raise up to $20 billion in a private placement that could value the company at a colossal $500 billion. This ambitious fundraising effort, first reported by, will put Tether in the same league as tech behemoths like OpenAI if successful.

According to thereport, which cited people familiar with the matter, the El Salvador-based company is considering selling a 3% equity stake, with Cantor Fitzgerald acting as the lead adviser. Discussions are said to be in the preliminary stages and the final amount could be subject to change.

The potential half-a-trillion-dollar valuation is a testament to Tether's immense profitability. The company recently reported a staggering $4.9 billion in profit for the second quarter alone. This financial success is largely driven by the widespread adoption of its USDT stablecoin, which is pegged to the US dollar and plays a crucial role in the global crypto trading ecosystem.

Tether CEO Paolo Ardoino confirmed on X (formerly Twitter) that the company is "evaluating a capital raise from a group of high-profile investors," stateing that the goal is to "expand Tether's strategy across stablecoins, distribution, AI, commodity trading, and other areas by several orders of magnitude.”

Tether is evaluating a raise from a selected group of high-profile key investors, to maximize the scale of the Company's strategy across all existing and new business lines (stablecoins, distribution ubiquity, AI, commodity trading, energy, communications, media) by several…

This news comes at a time of significant expansion for Tether, particularly in the United States. The company recently launched a new US-compliant stablecoin, USAT, and appointed Bo Hines, a former WHITE House crypto adviser under President Donald Trump, to lead its US operations.

Tether's reported $500 billion valuation stands in stark contrast to its main competitor, Circle. The issuer of the second-largest stablecoin, USDC, went public in June this year, raising $1.05 billion at an implied valuation of $8.06 billion. Circle has a strong regulatory footing, having received a BitLicense from the New York State Department of Financial Services and pursuing a national bank charter.

The vast difference in valuation between Tether and its rivals highlights the market's perception of their respective business models and growth potential. While Circle has all along emphasized regulatory compliance and institutional partnerships, Tether has captured a larger share of the global crypto trading market, despite facing scrutiny over the transparency of its reserves in the past.