Tether's Ambitious $500B Move: Expanding Stablecoins and Branching Out into Artificial Intelligence, Energy, and Media

Tether Holdings SA, the company behind the world’s largest stablecoin

, is reportedly in preliminary talks to secure between $15 billion and $20 billion through a private placement, potentially giving the firm a valuation near $500 billion. The capital raise, which would involve issuing new shares rather than selling existing ones, is being managed by Cantor Fitzgerald and has attracted interest from major investors such as SoftBank Group and Ark Investment Management. If completed, this would be among the biggest private funding rounds in the cryptocurrency industry, putting in the same league as private tech leaders like OpenAI and SpaceX Tether-reportedly-seeks-lofty-500-billion-valuation-in-capital-raise [ 1 ] Softbank-and-ark-to-join-in-tethers-20b-funding-round [ 5 ].

CEO Paolo Ardoino acknowledged the fundraising effort on his X account, explaining that the goal is to “maximize the scale” of Tether’s operations across stablecoins, artificial intelligence, commodity trading, energy, and media. The company, which posted $4.9 billion in net income for the second quarter of 2025, currently holds $162.5 billion in reserves against $157.1 billion in liabilities. Its flagship stablecoin, USDT, which is pegged to the U.S. dollar, now boasts a market cap above $173 billion—far surpassing its nearest competitor, Circle’s

, which stands at $74 billion Tether-reportedly-seeks-lofty-500-billion-valuation-in-capital-raise [ 1 ] Tether-eyes-20b-raise-at-500b-valuation-is-an-ipo-next [ 3 ].

The suggested valuation highlights Tether’s commanding presence in the stablecoin sector, which has expanded to $287 billion in 2025. Experts attribute the company’s strong earnings to its reserve assets, such as U.S. Treasuries and

, which delivered exceptional returns during the Federal Reserve’s interest rate hikes. Still, whether this valuation is achievable will depend on investor interest, as negotiations are still at an early phase Tether-eyes-20b-raise-at-500b-valuation-is-an-ipo-next [ 3 ] Tether-eyes-500b-valuation-amid-explosive-stablecoin-market-growth [ 8 ].

Tether’s growth plans include launching a new stablecoin, USAT, in the U.S. market, which will be regulated under the GENIUS Act. The company recently hired Bo Hines, a former White House crypto advisor, to oversee its U.S. operations, signaling its intention to benefit from clearer regulations under President Donald Trump’s crypto-friendly administration. This comes after Tether paid a $41 million fine in 2021 for issues related to reserve disclosures, as it works to enhance its standing with institutional clients Tether-reportedly-seeks-lofty-500-billion-valuation-in-capital-raise [ 1 ] Softbank-cathie-wood-s-ark-among-potential-investors-in-tether-fundraising-report [ 4 ].

The fundraising has sparked renewed speculation about a possible Tether IPO, especially after competitor Circle’s successful public debut in June. However, Ardoino has previously dismissed such speculation, stressing that there is no urgent need to go public. Meanwhile, institutional interest in stablecoins is rising rapidly, with 90% of surveyed organizations now using them for treasury and cross-border payment purposes, according to Fireblocks Tether-eyes-20b-raise-at-500b-valuation-is-an-ipo-next [ 3 ].

Some critics warn that Tether’s swift expansion could pose systemic risks, particularly if stablecoins undermine central banks’ control over monetary policy. Moody’s cautioned in September that increased use in developing economies could heighten liquidity risks, though regulatory oversight in advanced markets is becoming stricter. For now, Tether’s ambitious valuation goals highlight its significant influence in the rapidly changing crypto-asset industry.