SoftBank and Ark Invest Join Tether’s Massive $20 Billion Funding Round

Investment giants dive into crypto's most controversial success story.

The Funding Frenzy

SoftBank's Vision Fund and Cathie Wood's Ark Invest just placed their bets on Tether's $20 billion capital raise—making traditional VCs look like they're still figuring out fax machines. The move signals institutional acceptance of stablecoins, despite regulatory headwinds that would make lesser assets crumble.

Market Implications

This isn't just pocket change—it's a statement. When firms known for billion-dollar tech bets back crypto's liquidity backbone, even Wall Street skeptics start checking their Bloomberg terminals twice. The funding round validates Tether's dominance while exposing how traditional finance still can't decide whether to regulate or replicate digital assets.

Here's the cynical take: Nothing brings together tech investors and crypto true believers quite like the scent of $20 billion—proving that in finance, principles are flexible but profit margins are sacred.

Investor profiles

Tether has sought greater political acceptance in markets, including the US. The firm recently announced the USAT, a US-compliant stablecoin that could challenge Circle’s USDC dominance in the country.

Additionally, Tether has added Bo Hines, President Donald Trump’s former crypto advisor, as its Strategic Advisor for Digital Assets and US Strategy.

Tokyo-based SoftBank maintains a portfolio of technology investments spanning data centers, autonomous vehicles, and semiconductors.

The firm has recently committed $30 billion to OpenAI and continues to pursue high-growth technology opportunities. Meanwhile, Cathie Wood’s Ark Invest has invested in stablecoin competitors, including Circle.

Cantor Fitzgerald is serving as advisor for Tether on the fundraising process. The New York-based investment bank, led by now-US Commerce Secretary Howard Lutnick, also provides custody services for Tether’s reserve assets.

Billions in revenue

Tether generates revenue by investing reserves backing its USDT stablecoin in cash-equivalent assets, including US Treasuries. This business model allows the company to earn interest on these holdings while maintaining the token’s dollar peg.

Tether reported a net income of approximately $4.9 billion for the second quarter, bringing its year-to-date total to $5.7 billion. As of Sept. 25, USDT’s supply dominates 63% of the stablecoin market with $174.2 billion.

CEO Paolo Ardoino and co-founder Giancarlo Devasini lead the company. Devasini serves as chairman and holds the largest ownership stake.

The funding discussions represent Tether’s most substantial effort to attract institutional capital since its founding. If successful, it could establish new benchmarks for crypto company valuations and attract additional traditional finance participants to the stablecoin sector.