Tether Seeks $20 Billion: Targeting $500 Billion Valuation and Crushing Circle

Tether, the world’s largest stablecoin issuer, is preparing a move that could redefine the global financial landscape. According to reports, the company is seeking $15–20 billion in fresh financing through a private placement, valuing Tether at a staggering $500 billion. Such a valuation would place the firm alongside tech titans like OpenAI and SpaceX, while leaving rival Circle – valued at around $30 billion – far behind.

Tether Targets Half a Trillion CEO Paolo Ardoino stated that Tether is in talks with “a select group of key investors” to expand its strategy “by several orders of magnitude.” The deal would involve only new capital, not the sale of existing shares, with Cantor Fitzgerald acting as lead advisor. Headquartered in El Salvador, the company has reaped record profits by investing its reserves in U.S. Treasuries and other cash-like assets. In Q2 alone, Tether reported $4.9 billion in profits and boasts an astonishing 99% profit margin.

Returning to the U.S. After facing heavy scrutiny and regulatory pushback under the Biden administration, Tether is relaunching its U.S. operations under the pro-crypto Trump administration. The firm has appointed Bo Hines, a former White House crypto official, as CEO of its American division and launched a new stablecoin, USAT, regulated under the GENIUS Act. Ardoino also confirmed that the raised funds would not only strengthen stablecoin operations but also expand into AI, commodities trading, energy, media, and communications.

Market and Expert Reactions Ram Ahluwalia, founder of Lumida Wealth Management, commented:

“Last year I said we wanted to own a piece of Tether, and people laughed. Today, it’s one of the best businesses in the world.” Crypto veteran Arthur Hayes went even further, saying this move could spell the end for rival Circle.

USDT’s Record Dominance Tether’s dominance is also evident in numbers. The supply of USDT has hit a record $173 billion, giving it a 56% share of the stablecoin market. By comparison, Circle’s USDC holds $74 billion, or roughly a 25% share. Since the beginning of this year, USDT’s supply has grown by 26%, fueled by surging demand for stablecoins following the approval of the GENIUS Act.

Bottom line: If Tether successfully closes its $20 billion funding round, its $500 billion valuation would make it not only the undisputed leader in crypto, but also a heavyweight player in global finance.

#Tether , #USDT , #Stablecoins , #CryptoNews , #OpenAI

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