Key Highlights
- Tether prepares to raise between $15 billion and $20 billion from investors in exchange
- Cantor Fitzgerald will lead this funding round
Tether, the company behind the world’s most widely used stablecoin USDT, is in discussions to raise a massive amount of funding that would value the company at approximately $500 billion.
According to reports from September 24, Tether Holdings Ltd. is in early talks to raise between $15 billion and $20 billion from investors in exchange for a small percentage of company ownership.
JUST IN: $USDT issuer Tether seeks $20 billion at a $500 billion valuation, making it the most valuable private company alongside OpenAI.
— Watcher.Guru (@WatcherGuru) September 23, 2025
This would be one of the largest private investment rounds in the history of the cryptocurrency industry. The discussions are being led by Cantor Fitzgerald, a major Wall Street financial services firm.
The possible valuation comes as Tether experiences unprecedented growth and profitability. The company’s USDT stablecoin now has $172 billion in circulation, more than double its closest competitor.
Stablecoins are digital currencies whose value is pegged to traditional assets like the U.S. dollar, providing stability in the otherwise volatile cryptocurrency markets.
Tether’s recent financial performance has been remarkably strong. The company reported $4.9 billion in profit for the second quarter of 2025 alone, bringing its half-year earnings to $5.7 billion.
This profitability largely comes from the company’s substantial holdings of U.S. Treasury bonds, which have grown to over $127 billion. It is making Tether one of the world’s largest holders of this type of government debt.
Tether Prepares to Expand Amid Boom In the Stablecoin Market
The company plans to use the new funding to expand beyond its core stablecoin business into areas including cryptocurrency mining, renewable energy projects, and the development of new financial products.
Tether recently launched USA₮, a U.S.-regulated stablecoin headed by former White House aide Bo Hines. This was a part of this diversification strategy.
The stablecoin market overall has experienced explosive growth, expanding from a niche financial product to a $293 billion industry.
Stablecoins now process more transaction volume than major payment networks like Visa and Mastercard combined, with approximately $8.9 trillion in transactions during the first half of 2025.
Beyond cryptocurrency trading, stablecoins are increasingly being used for international money transfers, payroll processing, and everyday purchases in various countries.
This growth has been supported by regulatory developments, including the GENIUS Act signed into law in July 2025. This legislation created the first comprehensive federal framework for stablecoins in the United States, requiring regular audits, anti-money laundering compliance, and clear rules for consumer protection.
The law has encouraged traditional financial institutions to explore stablecoin offerings, with several major banks announcing their own digital currency projects.
Tether Faces Regulatory Scrutiny
Despite its success, Tether has faced scrutiny in the past regarding the transparency of its financial reserves. This has resulted in major fines from regulatory authorities.
The company has worked to address these concerns through regular financial attestations and improved disclosure practices.
However, some critics continue to question whether the proposed $500 billion valuation is justified given these historical issues.
The stablecoin market’s expansion reflects broader trends in digital finance. As more people and businesses worldwide seek efficient, low-cost alternatives to traditional banking services, stablecoins offer a promising solution.
Their ability to facilitate instant cross-border transactions without conventional banking intermediaries has particular appeal in developing economies and for migrant workers sending money to their home countries.
If completed, Tether’s funding round would represent a major milestone in the maturation of the cryptocurrency industry. It shows that digital asset companies can achieve valuations comparable to the world’s largest traditional financial institutions.
The outcome of these investment discussions will likely influence how other cryptocurrency companies approach fundraising and expansion in the coming years.
As the stablecoin market continues to evolve, regulatory clarity and transparent operations will be crucial for maintaining consumer trust. It also ensures the long-term stability of these digital assets.
The success of companies like Tether will depend on their ability to balance innovation with responsible financial practices as they shape the future of digital payments.
