The funding round, first reported by Bloomberg and confirmed by Reuters sources, would involve the sale of roughly three percent of the company’s equity. Cantor Fitzgerald, a longtime U.S. financial firm already linked to Tether’s treasury management, is advising on the transaction. Tether’s USDT token currently dominates the stablecoin market with a capitalization of around $173 billion, more than double its closest competitor.
Why the valuation matters
At an implied valuation of $500 billion, Tether would be placed in the same league as global technology giants, surpassing even the largest U.S. fintechs. The figure is almost three times the current market capitalization of Coinbase and more than four times that of PayPal. For a company with a product historically viewed as a utility—a dollar-pegged token—the scale of ambition suggests Tether aims to broaden its scope far beyond stablecoins.
Analysts say the raise would give Tether a massive war chest for acquisitions. “If Tether succeeds in pulling in this kind of capital, it signals that stablecoins are no longer niche instruments but potential cornerstones of the future financial system,” said Clara Medalie, director of research at Kaiko, in a recent interview.
Expansion into AI and infrastructure
Executives at Tether have previously hinted at ambitions that reach into artificial intelligence, telecommunications, and emerging market infrastructure. Chief Technology Officer Paolo Ardoino has spoken publicly about reinvesting profits into “technologies that make the world freer and more connected.” The raise, if secured, would provide the balance sheet strength to execute those ambitions at scale.
“Stablecoins are the foundation of crypto liquidity today. But Tether’s vision appears to extend into building critical infrastructure for tomorrow’s economy,” noted Nic Carter, founding partner at Castle Island Ventures. “The numbers being floated are staggering, but they reflect the profitability and dominance of their existing business.”
Regulatory and market risks
The move also comes as global regulators are stepping up scrutiny. In Europe, the Markets in Crypto-Assets regulation (MiCA) introduces strict requirements on reserves and disclosure for stablecoin issuers beginning in 2024. In the United States, discussions around a federal stablecoin framework have resurfaced as lawmakers push for clearer rules.
Skeptics warn that the deal could draw more regulatory attention. “If you’re valued like a megabank, regulators will treat you like one,” said Hilary Allen, a law professor specializing in financial regulation. “That means capital standards, disclosure, and oversight of a scale Tether has historically resisted.”
What it means for markets
For traders, the announcement underscores the resilience of USDT’s position as the de facto settlement currency in crypto markets. A successful raise would reassure users about the company’s financial backing, but it could also accelerate competitive pressures. Circle, issuer of USDC, has struggled to keep pace, and the euro-focused stablecoin initiatives by European banks may find themselves in a more difficult position against a cash-rich Tether.
For now, the market is waiting for confirmation of the deal’s structure and timing. If finalized, it would mark the single largest capital raise in the history of the cryptocurrency industry, and a turning point for how stablecoins are perceived in both financial and political circles.