Tether Aims for $500B Valuation in $20B Capital Raise

Tether Holdings is negotiating a private placement that could value the stablecoin issuer at nearly half a trillion dollars. The firm seeks to raise $15B-$20B for a 3% equity stake, positioning itself alongside tech giants like OpenAI and SpaceX. Cantor Fitzgerald is advising the deal, which involves new equity rather than secondary sales.

The ambitious valuation comes as Tether expands beyond stablecoins into AI, commodity trading, and energy sectors. CEO Paolo Ardoino confirmed the company is evaluating strategic investments from high-profile backers to scale its diversified operations. Meanwhile, competitor Circle maintains a $30B valuation, highlighting Tether's dominant market position.

This capital raise represents a watershed moment for cryptocurrency businesses, demonstrating how stablecoin issuers can achieve valuations rivaling traditional finance giants despite operating in a lightly regulated environment. The move coincides with shifting interest rate landscapes that may impact Tether's treasury management advantages.