Tether Holdings SA, the issuer of the world’s largest stablecoin, is engaged in preliminary discussions with major investors, including SoftBank Group Corp. and Ark Investment Management LLC, to raise billions that could elevate its valuation to $500 billion, according to reports from Bloomberg.
Potential Valuation of $500 Billion
If successful, this fundraising initiative would represent Tether’s largest attempt to secure external capital to date, positioning the company among the highest-valued private enterprises globally.
A $500 billion valuation would place Tether above many top global companies, reflecting the magnitude of its token issuance and the financial returns yielded from its reserves.
Tether’s dollar-pegged stablecoin, USDT, is widely utilized for transferring value across cryptocurrency markets and beyond, providing investors a means to transact outside traditional banking systems.
Supported by liquid-like assets, primarily U.S. Treasury bonds, Tether has generated substantial profits from interest revenues on these reserves.
The company is led by CEO Paolo Ardoino, while co-founder Giancarlo Devasini serves as chairman and remains its primary shareholder. Bloomberg estimates that a $500 billion valuation would make Devasini’s personal stake worth nearly $224 billion.
Strategic Support from SoftBank and Ark
Tokyo-based SoftBank, under founder Masayoshi Son, has a long-standing tradition of ambitious technology investments, spanning autonomous vehicles, semiconductors, and artificial intelligence.
A potential investment in Tether would align with its strategy of pursuing disruptive opportunities, including its anticipated $30 billion investment in OpenAI.
Ark Investment Management, led by Cathie Wood, has also shown keen interest in digital assets, having previously invested in Circle Internet Group Inc., Tether’s closest competitor in the stablecoin realm.
Circle’s USD Coin (USDC) currently has a market value of about $74 billion, compared to Tether’s $173.5 billion in issued tokens.
The involvement of SoftBank and Ark could bolster Tether’s efforts to strengthen its presence in traditional finance and enhance its political legitimacy—particularly in the United States, where the company has come under scrutiny for its role in facilitating illicit transactions.
Advisory Role and Industry Impact
Cantor Fitzgerald LP, the New York-based investment bank led for years by current U.S. Secretary of Commerce Howard Lutnick, is advising Tether on the fundraising efforts, also providing custodial services for Tether’s assets, underscoring its vital role in the company’s financial operations.
This fundraising initiative comes at a time when stablecoins are increasingly capturing the attention of investors, regulators, and governments.
As American authorities prepare for tighter scrutiny of digital assets, securing prominent backers could be essential for Tether’s positioning in global markets.
If negotiations proceed smoothly and funding materializes, Tether’s valuation would not only signify a milestone for the company but also for the broader cryptocurrency ecosystem, exemplifying the ongoing integration of digital assets into traditional finance.
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