Tether Holdings, the stablecoin company behind USDT, is seeking to raise between $15 billion and $20 billion through a private placement, potentially valuing the firm at approximately $500 billion.
This would position Tether alongside OpenAI as one of the most valuable private companies in the world, with a valuation comparable to that of publicly recognized technology giants.
The Structure of the Tether Deal
According to a recent Bloomberg report, Tether’s attempt to raise a record sum involves selling roughly a 3% stake in the company, advised by investment firm Cantor Fitzgerald. The move follows massive financial results, consolidating Tether’s position as the leading issuer in the global stablecoin sector.
Moreover, the fundraising is in its preliminary stages; several sources indicate that investor data rooms have only recently opened, and final fundraising figures may end up being lower than the targets.
The company has reported $4.9 billion in net profit for the second quarter of 2025 alone and claims holdings of $162.5 billion in reserves against $157.1 billion in liabilities. Its flagship stablecoin, USDT, currently holds a market capitalization of approximately $172.8 billion, representing about 56% of the total stablecoin market worldwide.
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Tether’s operational base in El Salvador, as well as its profitability per employee, are noted by industry observers. In 2025, the company generated a profit of $5.7 billion, surpassing many major technology corporations in comparison.
Such valuations draw attention to the stablecoin market’s rapid expansion, especially under a more favorable regulatory environment. Regulatory developments, including new legislation in the United States, contribute to momentum in the sector and underpin investor confidence.
Expansion Plans
Tether’s business strategy includes launching USAT, a stablecoin targeting U.S. residents, to further capitalize on the growing digital asset market. The company recently appointed former White House crypto adviser Bo Hines to lead the new effort, signaling its intent to leverage regulatory changes and capture additional market share.
Circle, the issuer of the rival USDC stablecoin, went public in early 2025 and increased its market capitalization to $33 billion; however, this figure is still significantly lower than Tether’s valuation goals. The expansion of stablecoins is seen as essential for facilitating efficient remittance and serving as on-ramps for blockchain applications.
The fundraising talks are still in an early phase and subject to revision. Market participants remain cautious, as skepticism persists regarding the sustainability of such high valuations and the long-term effects on the sector. Nevertheless, Tether’s initiative reflects ongoing changes in the digital asset landscape and highlights the growing intersection between crypto infrastructure and broader financial markets.
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