TLDR
- Tether seeks to raise $15-20 billion at $500 billion valuation through private placement
- Deal would give investors 3% stake with Cantor Fitzgerald as lead adviser
- Company posted $4.9 billion Q2 profit, totaling $5.7 billion year-to-date
- USDt maintains 56% stablecoin market share with $172.8 billion market cap
- Discussions remain preliminary with final amount potentially lower
Stablecoin issuer Tether Holdings is exploring a major fundraising round that could value the company at $500 billion, placing it among the world’s most valuable private enterprises. The potential deal represents one of the largest private equity transactions in the cryptocurrency sector.
Bloomberg sources report that Tether is considering raising between $15 billion and $20 billion in exchange for approximately 3% of the company. Cantor Fitzgerald is serving as the lead adviser for the potential private placement transaction.
The proposed valuation would position Tether alongside tech giants like OpenAI and SpaceX in terms of company worth. However, sources caution that discussions remain in early stages and the final fundraising amount could be lower than initial targets.
Bo Hines, CEO of Tether’s newly formed US division called Tether USAT, stated at a Seoul conference that the company has no current plans to raise additional funds. This statement appears to contradict reports of ongoing fundraising discussions.
Record Profitability Drives High Valuation
Tether has established itself as one of the most profitable companies globally on a per-employee basis. The stablecoin issuer recorded $4.9 billion in net profit during the second quarter of 2025 alone.
This strong performance brings Tether’s total year-to-date profit to $5.7 billion. The company’s exceptional profitability stems from its dominant position in the rapidly growing stablecoin market.
Tether’s USDt token remains the largest dollar-backed stablecoin in circulation with a market capitalization of $172.8 billion. This commanding position gives Tether roughly 56% of the total $307.2 billion stablecoin market.
The proposed transaction would involve new equity rather than existing shareholders selling their stakes. This structure would provide fresh capital while allowing current investors to maintain their ownership positions.
Market Competition and Strategic Positioning
Cantor Fitzgerald, which is advising the potential deal, currently holds a 5% ownership stake in Tether valued at approximately $600 million. If Tether achieves the $500 billion valuation target, Cantor’s stake would be worth $25 billion.
The investment firm was previously led by Howard Lutnick, who now serves as Commerce Secretary in the Trump administration. Cantor secured its Tether ownership through a previous investment arrangement reported by The Wall Street Journal.
Circle Internet Group, the issuer of USD Coin (USDC), serves as Tether’s primary competitor in the stablecoin space. Circle maintains $74 billion in USD-pegged tokens compared to Tether’s $172 billion supply.
Circle recently completed a successful public offering, surging over 160% on its trading debut to achieve a valuation above $18 billion. The company’s market value has since climbed to approximately $33 billion.
Stablecoin adoption continues accelerating globally as these digital assets provide efficient cross-border payment solutions and serve as gateways to blockchain applications. The recently passed GENIUS stablecoin bill in the United States aims to establish clear regulatory frameworks while preserving dollar dominance in the digital currency space.
Tether recently announced plans to launch USAT, a new USD-pegged stablecoin designed specifically for the American market.
